The CryptoZoo initiative created by Logan Paul captured the attention of the community, in large part since the YouTuber CoffeeZilla unmasked him in a series of videos (1).
The American influencer created CryptoZoo in the previous year. It is a game based on non-fungible tokens (NFT). Around September 2021 was the target date for the game's release that was designed to be played to gain rewards.
Even though Logan Paul was able to generate $2.5 million through the sale of CryptoZoo (CZ) NFTs, the game is absent from the scene.
In addition, he introduced a crypto currency known as the ZOO token, which has almost entirely lost its value since it was introduced.
A YouTuber and an attorney named Tom submitted (2) a class action complaint against Logan Paul to the United States District Court for the Western District of Texas.
Charges Leveled Against Logan Paul
Attorney Tom initiated the class action case on behalf of his client Don Holland, a police officer, and other persons whose circumstances were comparable. The action claims damages because the defendant engaged in rug pulling and manipulated the price of the ZOO token.
There have been claims made against Logan Paul for the various charges like fraud, express breach of contract, implied breach of contract, unjust enrichment, violation of Texas’s deceptive trade practices act (DTPA), negligence, fraudulent misrepresentation and conspiracy to commit fraud.
The impacted investors are eager to take part in the action to receive the refund which is being sought. On the other hand, the legal fees associated with the lawsuit will use up every single penny.
A class action lawsuit has been filed against Logan Paul on behalf of thousands of consumers who claim he cheated them.
"The purpose of this lawsuit is to obtain compensation from the defendants for their role in illegally marketing and selling items, not providing assistance for the CryptoZoo project, and distorting the crypto tokens.
The defendants ran this fraudulent business to take advantage of Plaintiff and other clients who put their faith in Mr. Paul's false statements and stole from them.
As a direct consequence, the Defendants have deceived the Plaintiff, and thousands of other customers. They have unfairly benefited themselves by making a profit off of the Plaintiff and others while failing to fulfill their commitments."
The Revival Strategy
A proposal to revitalize Logan Paul's YouTube channel, which included a $1.3 million incentives scheme, was unveiled a month ago. To begin, Paul said he would be burning his ZOO tokens to increase the token's value.
In the second phase, he committed one thousand ETH, equivalent to around one million dollars, to be a prize for those participants who desire to leave the system by burning their NFTs. The stakeholders will be compensated in crypto currency, and as a result, they will be forced to take the hit of a falling ETH price beginning in 2021.
As the last part of the process, he committed to completing the project and handing over the game. The community offered praise as well as constructive criticism of this proposal.