Don Holland filed a complaint against CryptoZoo and Logan Paul, saying that the YouTuber’s “fraudulent business” pulled a “rug pull.”
CryptoZoo and Logan Paul are named as defendants in a new class-action lawsuit. The lawsuit says that they ran a “fraudulent business” that stole millions of dollars in cryptocurrencies from buyers.
Plaintiff Don Holland claimed in a court filing on February 2 in the District Court for the Western District of Texas that Paul and executives at CryptoZoo “executed a rug pull” by promising purchasers of the nonfungible tokens (NFTs) exclusive access to crypto assets, among other benefits, but then abandoned the project and kept the funds.
“As part of Defendants’ NFT scheme, Defendants sold CZ NFTs to buyers by falsely claiming that buyers would get benefits in exchange for transferring cryptocurrency to buy the CZ NFT, such as rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem to use and sell CZ NFTs,” the complaint said.
“Shortly after completing the sale of all of their CZ NFTs, defendants, together with others, […] moved millions of dollars’ worth of customers’ cryptocurrency too, among other locations, wallets controlled by defendants,” the complaint claimed.
Attorneys from Ellzey & Associates and Attorney Tom and Associates, the latter owned by YouTube star Attorney Tom, filed the case.
On January 16, Attorney Tom told viewers in a YouTube video that they are suing Paul over the alleged crypto fraud after “weeks of investigation and speaking to several Crypto Zoo victims.”
Attorney Tom says the claim also names Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth) as others being sued.