Logan Paul And Unlaunched P2E Game 'CryptoZoo' Slapped With Class-Action Lawsuit

A newly-filed class-action lawsuit alleged that social media star Logan Paul and the announced but yet-to-be-launched play-to-earn game "CryptoZoo" stole millions of dollars worth of crypto by executing a rug pull.

Just less than a month after his controversial statements against online sleuth and YouTuber Coffeezilla, Paul - the popular social media celebrity - has been named as one of the defendants in a new class-action lawsuit filed Thursday at the United States District Court for the Western District of Texas, Austin Division by plaintiff Donald Holland.

Holland alleged that Paul and the executives of "CryptoZoo" executed a "rug pull" scheme by promising exclusive access and several other benefits to those who purchased the Non-Fungible Tokens (NFTs) of the game but abandoned the project and kept the funds.

"The Defendants executed a 'rug pull,' which is a colloquial term used to describe a scheme in which an NFT developer solicits funds from prospective NFT purchasers promising them certain benefits. Once the purchasers' funds are used to purchase the NFTs, the developers abruptly abandon the project and fail to deliver the promised benefits all while fraudulently retaining the purchasers' funds," the plaintiff alleged.

"As part of Defendants' NFT scheme, Defendants marketed CZ NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to purchase the CZ NFT, purchasers would later receive benefits, including, among other things, rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem to use and market CZ NFTs," the court filing read.

"Defendants operated this fraudulent venture to exploit and steal from Plaintiff and other customers who trusted Mr. Paul's false representations. As a result, Defendants defrauded Plaintiff and thousands of other consumers, and unjustly enriched themselves by profiting off Plaintiff and others without delivering on their promises," the plaintiff further alleged.

The latest lawsuit came after Paul retracted his previous threat against YouTuber and online sleuth who uses the handle Coffeezilla.

The sleuth dropped a three-part expose on his YouTube channel documenting CryptoZoo and Paul's involvement in the failed play-to-earn game.

After threatening Cofeezilla, Paul apologized to the YouTuber, as well as to investors of "CryptoZoo" and released a video detailing the $1.5 million three-step recovery plan for the P2E game and a rewards program to refund disgruntled investors.

Paul said that to prove they have no "financial upside" in the game, the recovery plan would include burning of his and co-founder Jeff Levin's CryptoZoo token holdings.