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Logan Paul linked to shady crypto investments – BBC Research report
Crypto Zoo case
So what side does the SEC plan to take regarding these allegations?
In addition to a lawsuit over his crypto zoo, social media personality Logan Paul is facing new allegations that he misled fans about crypto investments. A BBC investigation has uncovered alleged links between Logan Paul and his private crypto wallet transactions.
Logan Paul’s influence is best illustrated by his 23 million YouTube subscriptions. The BBC has shown that he has driven up the price of these investments and hinted that he could profit from the sale of any tokens he holds.
The accusations link Logan Paul to questionable crypto trading and ethical concerns, and center on his endorsements of high-risk tokens like Elongate and Dink Doink, as well as his failed nonfungible token (NFT) project CryptoZoo. Logan Paul is currently facing a multimillion-dollar lawsuit over the failed project. Reports say he has denied all wrongdoing.
Logan Paul linked to shady crypto investments – BBC Research report
Logan Paul reportedly started talking about crypto three years ago. It reportedly influenced a meme coin called Elon Musk-themed Elongate. “Elongate made me rich. Elon baby, let’s go!” he said in a video clip on his subscription fan club, which was later reposted on X.
Elongate’s price then rose by more than 6,000% to reach an all-time high. The BBC claims that the mention of Elongate appeared to have influenced its price. An unknown wallet purchased around $160,000 worth of tokens about an hour before Paul’s post.
The post attracted many buyers, sending the price soaring. Twelve hours later, the wallet had sold most of its holdings. The total profit from this trade appears to be just over $120,000.
Photo of Logan Paul: Source – Rollingstone
In June 2021, Logan Paul also promoted a meme coin called "Dink Doink." Paul promoted the token on X, saying, "I think it's going to go crazy." An X user filed a complaint and demanded that Paul be investigated.
Again, this led to many buyers and caused Dink Doink’s value to increase. Shortly after large-scale holders of the token started selling, the price dropped by 96% in just two weeks.
Time Magazine analyzed another anonymous wallet that purchased Dink Doink before Logan Paul introduced the coin and sold it shortly after. This wallet then sent $100,000 to Paul’s public wallet.
The anonymous crypto wallet analyzed by the BBC appears to have close links to Paul. The BBC claims they can see that the wallet first received money from a public wallet belonging to Logan Paul in February 2021 and then began buying and selling crypto.
Crypto Zoo case
In the current case, the lawyer behind the case said that the failure to deliver the game was only part of the case. The other part, he said, was the leaked messages. He explained that the messages revealed that Paul and his team were involved in a "secret launch" of Zoo Tokens. This allowed them to quietly purchase them at a low price.
Logan has repeatedly denied any wrongdoing with CryptoZoo, choosing to blame other team members for failing to deliver promised features.
Paul announced a partial compensation plan for disappointed investors earlier this year. He promised to refund people who purchased his NFT eggs, but only if they agreed not to sue him for anything related to CryptoZoo.
So what side does the SEC plan to take regarding these allegations?
If a celebrity promotes a particular cryptocurrency, they must disclose whether they were paid and how much, according to Securities and Exchange Commission (SEC) Chairman Gary Gensler.
He also explained that details should be provided on whether they own the tokens, make money from the tokens, or actually know anything about the project.
In the past, several celebrities have faced legal trouble for promoting crypto, including Kim Kardashian, who was fined $1.26 million in 2022 for promoting a token called EthereumMax on her Instagram account.
Logan Paul has several crypto lawlessness sagas. The SEC is known to deal with even major crypto investors in much the same way. Will this be different?
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