Famous YouTuber Logan Paul has been accused of misleading his fans over crypto investments. On November 20th, the brother of the famous boxer Jake Paul was accused of advertising investments without disclosing his financial stake in them.
The revelation comes at a time when many celebrities have faced allegations of promoting fake cryptocurrencies, like Caitlyn Jenner previously.
Logan Paul Faces Backlash
According to BBC reports, amid persistent worries that he may have made money by deceiving fans, Logan Paul is being questioned again about his Bitcoin transactions.
According to further information obtained by the BBC, he advertised investments without disclosing his financial stake in them.
It seems that Paul’s influence—his YouTube channel has over 23 million subscribers—caused these assets’ prices to soar, raising the possibility that he may have made money from the sale of any tokens he owned.
Paul Faces Issues With CryptoZoo
Additionally, Paul is also facing a multi-million dollar lawsuit related to CryptoZoo, a failed cryptocurrency enterprise.
Logan Paul was a co-founder of the failed blockchain game CryptoZoo. It was introduced in 2021 with the promise of combining non-fungible tokens with cryptocurrencies in a game. CryptoZoo was promoted as a non-fungible token “autonomous ecosystem” where users could purchase, trade, and sell unusual animals and hybrids. Collectors had the option of buying the eggs using Ethereum or the in-game coin $ZOO.
CryptoZoo was first marketed by Paul as a “really fun game that makes you money.” He emphasized the size of the team behind the project by claiming to have spent almost a million dollars on its development. Paul, however, seemed to give up on CryptoZoo once the initial excitement subsided.
NFTs and cryptocurrency coins were sold to raise millions of dollars, but CryptoZoo fell short of expectations.
Logan Paul Markets Memecoins
In 2021, Paul aggressively pushed meme coins, which are typically seen as risky investments. According to the BBC, there is proof that Paul’s known wallet is connected to an anonymous wallet.
This wallet allegedly exchanged Elongate, a parody coin with an Elon Musk theme, right before Paul sent out his promotional tweet.
An hour or so prior to Paul’s tweet, close to $160,000 worth of the currency was bought by an unidentified wallet. The price of the token increased as a result of the tweet’s surge in new buyers. More than $120,000 was made when the wallet sold the majority of its tokens twelve hours later.
These results are consistent with a Time Magazine article that found a similar tendency using an anonymous wallet and another cryptocurrency.