Logan Paul accused of misleading followers: report
After the CryptoZoo lawsuit, new evidence reported by the BBC alleges that American YouTuber Logan Paul misled followers by promoting meme coins on his social media accounts and subsequently selling them
A report published by the BBC on Nov. 20 takes a deep dive into Logan Paul’s crypto-related endeavors, claiming the team has found “new evidence suggesting he promoted investments without revealing he had a financial interest in them.”
The BBC alleged that Paul promoted several high-risk meme coins and sold them shortly after. At the time of writing, Logan Paul has not publicly responded to these allegations.
In May 2021, Paul promoted an Elon Musk-themed meme coin called Elongate in a video clip that he uploaded to his subscription fan-club, the Maverick Club.
“Elongate made me rich. Elon baby let’s go!” said Paul in his video.
Shortly after, Elongate’s price surged by over 6,000%, reaching an all-time high before plummeting within hours. An anonymous wallet, which the BBC report suggests is linked to Paul’s personal wallet, reportedly gained $120,000 from selling Elongate tokens.
Another related case happened when Paul promoted a different Musk-related meme coin, commenting that it was headed “to the moon,” indicating the price of the meme coin was going to skyrocket.
The anonymous wallet bought nearly $160,000 worth of the meme coins an hour before Paul posted the tweet in his social media, prompting its price to reach a peak thanks to the influx of buyers.
In June 2021, Paul endorsed the meme coin “Dink Doink,” featuring a cartoon character shaped like a metal coil. He told followers on X and in a Telegram group that he believed in the token, claiming, “it’s going to go crazy.”
According to Time Magazine, an anonymous wallet reportedly bought Dink Doink tokens before Paul’s promotion, sold them shortly after, and later transferred $100,000 to a wallet the report claims is associated with Paul. Paul’s lawyers stated that while the wallet may belong to him, the $100,000 transfer was unrelated to Dink Doink..
The BBC reportedly tried reaching out to Paul and his team for an interview but kept getting rejected. Until one day Paul agreed to an interview at his gym in Puerto Rico. The BBC team reported that they were ‘trolled’ during an attempted interview, arriving at the location to find a Logan Paul impersonator and a crowd booing them.
Before these allegations, Paul was already in hot water after his venture into the crypto sphere, CryptoZoo, resulted in a multi-million-dollar lawsuit. Paul has repeatedly denied all accusations related to his role in CryptoZoo. He instead blamed other members of the team who he said failed to deliver on the promised features.
On Jan. 4, Logan Paul announced a plan to commit more than $2.3 million in buying back non-fungible tokens purchased through CryptoZoo. He said that he would refund players 0.1 Ether(ETH) per NFT bought.
“The buy-back is not intended to compensate those who gambled on the crypto market and lost,” he said, adding that CryptoZoo was “not intended as an investment vehicle.” In 2023, Paul unveiled a similar recovery plan worth $1.3 million.
