Logan Paul, a prominent social media influencer with over 23 million YouTube followers, is facing scrutiny over his cryptocurrency promotions and potential financial misconduct. The BBC investigation reveals several concerning incidents involving Paul’s crypto-related activities.
In 2021, Paul began heavily promoting “meme coins” – high-risk cryptocurrency tokens often inspired by internet jokes. One such coin, Elongate, saw its price spike by over 6,000% after Paul’s endorsement. An anonymous crypto wallet closely linked to Paul reportedly made a $120,000 profit from trading the coin shortly after his promotion.
Similarly, Paul promoted another meme coin called “Dink Doink,” which experienced a significant price surge followed by a 96% crash within two weeks. Time Magazine discovered an anonymous wallet that bought Dink Doink before Paul’s promotion and later transferred $100,000 to his public wallet.
Paul is currently facing a multi-million-dollar lawsuit over CryptoZoo, an NFT-based trading game he launched in 2021. The project attracted $18.5 million in investments, promising participants could breed digital hybrid animals that would generate passive income. However, the game was plagued with technical issues, and investors claim they were misled.
Tom Kherkher, the lawyer representing over 130 investors, alleges that Paul’s team engaged in potential insider trading. Leaked messages suggest the team planned a “stealth launch” of Zoo Tokens, allowing them to buy in at low prices before selling when the total token value reached $200 million.
Paul has denied wrongdoing, instead blaming other team members for the project’s failures. He recently announced a partial compensation scheme, offering refunds to egg purchasers who agree not to sue him.
The investigation highlights broader issues in celebrity cryptocurrency promotions. Gary Gensler, head of the Securities and Exchange Commission, emphasizes that celebrities must disclose their financial interests when promoting tokens. Other celebrities like Kim Kardashian have faced significant fines for similar undisclosed promotions.
When the BBC attempted to interview Paul in Puerto Rico, the encounter took a bizarre turn. Instead of Paul, a lookalike appeared, and a crowd suddenly emerged shouting accusations at the BBC crew. Paul’s team subsequently sent a legal warning about potential consequences of publishing the findings.
Despite these controversies, Paul’s popularity remains largely unaffected. He has diversified his career into boxing, wrestling, and a successful drinks company, Prime, launched with fellow influencer KSI.
One disillusioned fan, Rueben Tauk, who lost £33,000 in the CryptoZoo project, summarized the sentiment: “Once you listen to someone and trust what they’re saying and they betray that trust, their words don’t mean anything to you anymore.”
Paul continues to deny any intentional wrongdoing and is even pursuing a libel claim against an online critic.
