BBC: “Logan Paul was able to earn millions in cryptocurrencies by deceiving his followers”

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By Berto R

The BBC investigation team claims to have found traces that implicate the famous American YouTuber Logan Paul in promoting investments in cryptocurrencies, without having revealed his links to these projects.

In 2021, an anonymous wallet purchased nearly $160,000 in Elongate memecoin tokens, approximately an hour before Logan Paul posted a video clip on the social network X, where he claimed that the meme coin had made him rich. The publication caused a significant increase in buyer interest, shooting up the price of the crypto asset up to 6000% and reaching its all-time high.

Twelve hours later, a large part of the Elongate tokens were transferred from said wallet. They were sold, achieving a profit of USD 120,000. BBC investigators assume that the wallet, which remains anonymous, is owned by Logan Paul, although they cannot confirm this with certainty at the moment.

According to the investigation, the wallet received funds for the first time in 2021 from a public wallet owned by Logan Paul. Subsequently, funds began to arrive from Club Maverick, the exclusive membership platform created by the influencer who currently has more than 20 million followers on his YouTube channel.

According to the BBC investigation, Logan Paul avoided giving statements to that medium for several months, until he changed his position by inviting journalists to interview him at a gym in Puerto Rico. However, the British media published that, instead of the YouTuber, The person who showed up at the agreed location was a double.

Shortly after, the BBC received a letter from the influencer’s lawyers, urging them not to disclose the results of their investigation. His recent post highlights that Paul is also currently facing a multimillion-dollar lawsuit related to a failed project called CryptoZoo. The accusation, filed in February 2023, maintains that this initiative, which was intended to be a game with cryptocurrencies, never fulfilled what was promised and that the content creator and his team abandoned the project after raising funds from investors.

In January 2024, Logan Paul expressed his disappointment on X that CryptoZoo was not coming to players, explaining that it ultimately would not happen due to regulatory issues. According to the YouTuber, “CryptoZoo was derailed by bad actors who stole users’ money and betrayed the development team.” In addition, he announced a refund program for those affected and stated that he would take the case to the Texas courts so that those responsible could face the consequences.

Paul’s rebate program offered 0.1 ether (ETH) for each eligible CryptoZoo NFT, but in exchange for those affected waiving any future legal action. This did not calm the plaintiffs, who saw the offer as insufficient and continued to demand answers.

Tom Kherkher, an attorney representing several victims in a class-action lawsuit, called the refund program “a non-workable solution,” noting that the condition that any “actual or anticipated claim against Paul” be waived is nothing more than a “sneaky trick.” Meanwhile, those affected continue to seek full compensation and do not rule out taking further legal action against Paul.

This type of litigation highlights one of the main concerns within the cryptocurrency space, particularly when public figures become involved in its promotion. Another example involved Elon Musk and Tesla for alleged manipulation of the dogecoin (DOGE) market, although this case did reach a conclusion.

In this lawsuit, a group of investors accused Musk of manipulating the dogecoin market through publications on X, which would have caused million-dollar losses after an increase and subsequent collapse of the cryptocurrency. However, the judge who led the case, Alvin Hellerstein, pointed out that the businessman’s statements did not constitute evidence of fraud, dismissing the accusation for lack of legal foundations. This was reported by NoticiasVE.

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