YouTuber Logan Paul Accused of Profiting From Misleading Crypto Deals

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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November 20, 2024 03:29 EST

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American YouTube star Logan Paul reportedly faces renewed scrutiny over his crypto activities, amid ongoing concerns that he may have misled his followers for personal profit.

The BBC reported on Wednesday that it uncovered new evidence showing Paul promoted certain investments while hiding his financial stake in them. The YouTuber, who has 23.6m subscribers, appears to have influenced investment prices, sparking suspicions he sold tokens for profit.

Representatives for Paul didn’t return Cryptonews’ request for comment by press time.

Logan Paul Allegedly Benefited From Meme Coin Price Surge After Promotion

In 2021, Paul actively promoted meme coins, which are generally considered as high-risk assets. The BBC reported evidence linking an anonymous wallet to Paul’s known wallet. This wallet reportedly traded Elongate, an Elon Musk-themed meme coin, just before Paul’s promotional tweet.

An unknown wallet purchased nearly $160,000 of the token about an hour before Paul’s tweet. After the tweet, new buyers rushed in, driving up the token’s price. Twelve hours later, the wallet sold most of its tokens, earning over $120,000 in profit.

These findings follow a Time Magazine report showing a similar pattern with another cryptocurrency and anonymous wallet.

“Elongate made me rich. Elon baby let’s go!” Paul declared in a video shared with his subscription-based Maverick Club fan community.

BBC Reportedly Met With Lookalike and Legal Threats From Logan Paul

Logan Paul initially avoided discussing the investigation with the BBC, dodging them for months. Eventually, he appeared to change his stance, inviting the BBC to interview him at his Puerto Rico gym.

However, when the crew arrived, a lookalike showed up instead, the report said. Soon after, a disruptive crowd was said to be harassing the BBC team. Following this incident, Paul’s attorneys sent a legal notice warning the BBC against publishing their findings.

Class-Action Lawsuit Over Alleged CryptoZoo ‘Rug Pull’

Separately, Logan Paul is currently facing a class-action lawsuit linked to his failed NFT project, CryptoZoo. The lawsuit accuses Paul and his team of a “rug pull,” abandoning the project after collecting investor funds. Participants claim the game never worked as promised and allege CryptoZoo was a “fraudulent venture.”

Meanwhile, Paul has filed a defamation lawsuit against YouTuber Stephen Findeisen, known as Coffeezilla. Paul argues that Findeisen’s reports on CryptoZoo falsely portrayed him as defrauding his audience.