In a court docket submitting on Feb. 2 within the District Courtroom of the Western District of Texas, plaintiff Don Holland alleged that Paul and executives at CryptoZoo “executed a ‘rug pull'” by promising purchasers of the nonfungible tokens (NFTs) unique entry to crypto belongings amongst different advantages however finally deserted the venture and saved the funds.
“As a part of Defendants’ NFT scheme, Defendants marketed CZ NFTs to purchasers by falsely claiming that, in change for transferring cryptocurrency to buy the CZ NFT, purchasers would later obtain advantages, together with, amongst different issues, rewards, unique entry to different cryptocurrency belongings, and the help of an internet ecosystem to make use of and market CZ NFTs,” it wrote.
We’ve formally filed a category motion lawsuit within the Western District of Texas towards Logan Paul et al. for the CryptoZoo fiasco. (That is along with the quite a few circumstances heading to arbitration on the matter.) pic.twitter.com/BIC5v63TGZ
— AttorneyTom (@attorney_tom) February 2, 2023
“In actuality, quickly after finishing the sale of all their CZ NFTs, Defendants, along with others […] transferred tens of millions of {dollars}’ value of purchasers’ cryptocurrency to, amongst different locations, wallets managed by Defendants,” it alleged.
The lawsuit was submitted by attorneys from Ellzey & Associates and Legal professional Tom and Associates, the latter of which is the regulation agency run by YouTube persona Legal professional Tom.
In a YouTube video on Jan. 16, Legal professional Tom advised viewers that they’re suing Logan Paul for the alleged crypto rip-off after “weeks of investigation and talking to a lot of Crypto Zoo victims.”
Different defendants named within the swimsuit embrace Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth), based on Legal professional Tom.
It is a growing story and extra info can be added because it turns into out there.
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