Logan Paul accused of misleading followers: report

New evidence reported by the BBC following the CryptoZoo case alleges that American YouTuber Logan Paul misled his followers by promoting meme coins on his social media accounts and then selling them

A report published by the BBC on November 20 takes a deep dive into Logan Paul’s crypto-related efforts, claiming that the team found “new evidence suggesting he supported investments without disclosing that he had a financial interest in them.”

The BBC claimed that Paul introduced several high-risk meme coins and sold them soon after. At the time of this writing, Logan Paul has not publicly responded to these allegations.

In May 2021, Paul unveiled an Elon Musk-themed meme coin called Elongate in a video clip uploaded to his subscriber fan club Maverick Club.

“Elongate made me rich. Elon baby let’s go!” said Paul in his video.

Shortly thereafter, Elongate’s price rose over 6,000% to reach an all-time high before falling within a few hours. An anonymous wallet, which the BBC report suggested was linked to Paul’s personal wallet, reportedly made $120,000 from the sale of Elongate tokens.

Another related case occurred when Paul promoted a different Musk-related meme coin, saying it was heading “to the moon” and indicating that the price of the meme coin would skyrocket.

The anonymous wallet purchased nearly $160,000 worth of meme coins an hour before Paul posted the tweet on social media, allowing its price to peak thanks to an influx of buyers.

In June 2021, Paul approved the meme coin “Dink Doink,” which features a cartoon character in the shape of a metal coil. He told followers on X and in a Telegram group that he believed in the token, claiming it would “go crazy.”

According to Time Magazine, an anonymous wallet reportedly purchased Dink Doink tokens before Paul’s introduction, sold them shortly after, and then transferred $100,000 to a wallet the report claims is associated with Paul. Paul’s lawyers stated that the wallet may belong to him, but the $100 thousand transfer has nothing to do with Dink Doink.

The BBC reportedly tried to reach Paul and his team for an interview but was repeatedly 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 attempt at an interview, when they arrived at the venue to find a Logan Paul impersonator and a crowd booing them.

Prior to these allegations, Paul was already in hot water after his crypto startup CryptoZoo resulted in a multimillion-dollar lawsuit. Paul has repeatedly denied all accusations regarding his role in CryptoZoo. Instead, he blamed other members of the team who he said failed to deliver on the features promised.

On January 4, Logan Paul announced his plan to commit more than $2.3 million to buy back non-fungible tokens purchased through CryptoZoo. He said he would refund players 0.1 Ether (ETH) per NFT purchased.

“The purpose of the buyback is not to compensate those who gambled and lost in the crypto market,” he said, adding that CryptoZoo was “not designed as an investment vehicle.” In 2023, Paul announced a similar rescue plan worth $1.3 million.