CryptoZoo faces class action lawsuit over alleged NFT scam involving Logan Paul
CryptoZoo, an online gaming project that sells non-fungible tokens (NFTs) to players, is facing a class action lawsuit for allegedly running a fraudulent scheme that took millions of dollars in cryptocurrency from thousands of customers.
The class-action lawsuit was filed in federal court in Texas by a police officer who bought digital currency from CryptoZoo, alleging that the company and its executives, including YouTube star Logan Paul, ran an illegal “rug pull” scheme in which they lured customers into buying tokens for a game they were never able to play.
According to the class action, CryptoZoo launched its NFT project in August 2021, promising players could use their tokens to buy, breed and trade digital animals called “zoos” in a virtual world. The company also claimed that its NFTs supported real conservation efforts and that it had partnered with reputable organizations such as the World Wildlife Fund.
The class action claims that CryptoZoo never kept its promises and that the NFTs were worthless and useless. The lawsuit says the plaintiff and thousands of others bought tokens to use in the CryptoZoo game that never existed in an illegal “rug pull” scheme orchestrated by company executives.
The class-action lawsuit accuses CryptoZoo and its insiders of violating federal and state laws, including the Securities Act of 1933, the Texas Securities Act and the Texas Deceptive Trade Practices Act. The plaintiff seeks to represent a class of all persons who purchased CryptoZoo tokens and to recover damages, indemnification and injunctive relief.
The lawsuit also names Logan Paul as a defendant, alleging that he used his online platforms to market CryptoZoo’s products to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products.
The class action claims that Paul was a co-founder and co-owner of CryptoZoo and that he received a large portion of the proceeds from the token sale.
CryptoZoo and Logan Paul have yet to respond to the class action lawsuit.
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Christopher Cantrell, Esq.
Mr. Cantrell is an attorney with 20 years of experience representing individuals injured by defective products in class action and mass tort litigation.
