Social media influencer Logan Paul is facing accusations of profiting from cryptocurrency promotions without disclosing his financial interests, according to a BBC investigation.
The accusations link Paul to questionable cryptocurrency trades and ethical concerns and center on his endorsements of high-risk tokens like Elongate and Ink Doink, including his failed non-fungible token (NFT) project, CryptoZoo.
A BBC report stated that efforts to interview Paul were derailed by unusual stunts, including the appearance of a lookalike in Paul’s place and a staged protest.
Although Paul’s legal team denies wrongdoing and has issued warnings against publishing allegations against the social media personality, the controversy is growing as crypto becomes increasingly popular among younger audiences.
Related: Coffeezilla says ‘groundless’ Logan Paul lawsuit aims to ‘crush new investigations’
Anonymous wallets and questionable profits
The BBC investigation allegedly unearthed evidence linking Paul to an anonymous crypto wallet through transactions linking to the influencer’s public wallet.
The anonymous wallet reportedly purchased tokens before Paul promoted them to his 23 million YouTube followers and followed a sell-off at a profit after the price spiked.
The BBC report highlights an instance where Paul endorsed memecoin Elongate in 2021 after the anonymous wallet allegedly bought $160,000 of the token — making a reported $120,000 profit after selling its holdings after the endorsement.
Related: NFT sales down 44%, Logan Paul sues Coffeezilla: Nifty Newsletter
BBC interview dupe
The BBC’s attempts to interview Paul about the allegations reportedly took a bizarre turn when a lookalike was sent to the influencer’s place at the gym in Puerto Rico, which he co-owns with his brother.
After sending Paul a list of allegations the news outlet wanted responses to, the team noticed “a suspicious number” of Paul’s cameras pointing at them when visiting the gym.
Allegedly, after the BBC team asked if “the real Logan Paul would be coming,” a group of people appeared with banners “shouting that the BBC were ‘pedophiles’.”
“We had flown all that way just to be trolled.”
Related: Logan Paul sues Coffeezilla for defamation over CryptoZoo videos
CryptoZoo debacle and lawsuit
In Paul’s documentary, 5 Months with Logan Paul, Paul argued that CryptoZoo was not a scam despite admitting there was “an element of truth to it.”
The multimillion-dollar lawsuit over the NFT-based game, which investors alleged failed to deliver promised features, was brought against the influencer by at least 130 individuals claiming over $4 million in total damages for financial losses.
Paul announced his “buy back” program on Jan. 4, promising to buy back the NFTs from investors at the original purchase price, but the caveat was that it would mean waiving the right to sue the influencer or CryptoZoo for additional damages.
Magazine: Legal issues surround the FBI’s creation of fake crypto tokens
By Cointelegraph.com News
Source: Cointelegraph.com News
