Logan Paul is being sued for fraudulent action involving an NFT game

Logan Paul, a well-known YouTube star with 23.6 million subscribers, recently got a class-action lawsuit filed against him due to “fraudulent actions” involving his NFT-based crypto game, CryptoZoo.

Paul was accused of running a scammy project after a year-long investigation by another YouTuber, Stephen “Coffezilla” Findeisen. Findeisen is known for looking into fake gurus, fraudsters, and scammers in the crypto industry, and according to him, Paul’s CryptoZoo is a scam.

The results of the investigation

CryptoZoo is a blockchain-based game that uses non-fungible tokens (NFTs), and like many similar games, it is supposed to work as a source of passive income for those who play it. Advertised as a P2E game that allows players to earn while playing, the game actually ended up being a rug pull, allegedly designed to scam the same investors and fans that were supposed to profit from it.

According to the results of the investigation, everyone involved was tricked into investing in NFTs in order to play the game, while behind the scenes, Paul’s team sold the in-game currency before everyone else got to do it, thus causing its price to drop.

Everyone who invested in the game lost hundreds, if not thousands, of dollars. Apart from the people who were actually working on the game, that is. They allegedly made thousands at players’ expense. All of this information was presented by Coffeezilla in his multi-part investigatory series.

Paul’s initial reaction to the investigation was fury, and he called Coffeezilla a “Keemstar of crypto in finance.” More than that, he threatened to sue him in another video, which he deleted in the meantime.

After that, he published another video, apologizing to the fans and Coffeezilla himself and announcing a 3-step plan that would result in the completion and delivery of CryptoZoo. He promised this as the game — already presumed a scam — has basically been broken since the launch. However, promises, whether true or false, will not be enough for the YouTuber to come out of the controversy.

Details of the lawsuit

While Paul is no stranger to controversy — most still remember the Japanese forest incident — this time, he was allegedly running a real scam, which is more than just a hit to his reputation. This time, if the accusations end up being correct, Paul has broken the law, and the class-action lawsuit that Coffeezilla announced on his Twitter on February 3rd confirms that the authorities will not let this one slide.

🚨Logan Paul was just sued in a class action lawsuit for his role in CryptoZoo, along with Jeff Levin, Crypto King, Eddie Ibanez and more. pic.twitter.com/Wmk3jM8grx

— Coffeezilla (@coffeebreak_YT) February 3, 2023

The plaintiff is a police officer from Texas who previously invested $3,000 into the game, hoping to get big returns. However, after losing the money, he filed litigation in Austin, TX. Now, he is seeking damages above $75,000 while accusing Paul of conspiracy to commit fraud, negligence, fraudulent misrepresentation, unjust enrichment, and more.

Furthermore, the plaintiff did not stop at Paul. Instead, he named everyone who worked on the game’s creation, including the former lead developer Eddie Ibanez.