Don Holland has filed a lawsuit against CryptoZoo and Logan Paul, claiming that he was involved in a “rug pull.” Plaintiff alleges that CryptoZoo is a “fraudulent enterprise” that led to the loss of enormous amounts of cryptocurrency.
Don Holland filed the lawsuit on Feb. 2 in the Texas Western District Court. He alleged that Paul and executives at CryptoZoo “executed a rug pull” by promising buyers of the NFTs exclusive access to cryptocurrency assets and other benefits but then abandoning the project and pocketing the funds.
It is stated in the petition that, soon after finalizing the sale of all of their CryptoZoo NFTs, the defendants, together with others, shifted millions of dollars worth of customers’ cryptocurrencies to, among other locations, their private wallets.
The plaintiffs in the lawsuit were Ellzey & Associates and Attorney Tom and Associates. This latter law firm is owned and run by Attorney Tom, a well-known personality on YouTube who is also an attorney.
Attorney Tom: Not just Paul and CryptoZoo are in hot soup
After “weeks of investigation and dealing with a variety of Crypto Zoo victims,” Attorney Tom disclosed in a YouTube video posted on Jan. 16 that a lawsuit would be filed against Paul about the alleged cryptocurrency fraud.
Attorney Tom claims that Danielle Strobel, Eddie Ibanez, Jeff Levin, Ophir Bentov (Ben Roth), and Jake Greenbaum are all named as defendants in the lawsuit.
Paul has already disclosed a $1.5 million recovery strategy for dissatisfied investors in the CryptoZoo project in a video broadcast on Twitter on Jan. 13. He detailed a three-part plan for making a comeback, the first of which would include him and his fellow CryptoZoo co-founder Jeff Levin burning all of his ZOO tokens.
Paul won’t sue CoffeeZilla
Additionally, Paul admitted that he would not be suing CoffeeZilla over allegations that his enterprise was fraudulent. He said he would instead focus on “friends and supporters of him” than on suing CoffeeZilla since doing so would “not assist CryptoZoo holders.”
He stressed that if they do this, they will “have no financial upside” in the game and that it will add value to the tokens held by the holders.
Paul said that in the second stage, he would put 1,000 ether (ETH) of his own money into the project. This would let “disappointed” investors burn their NFTs to get back their initial 0.1 ether investment, which is what it costs to mint an NFT.
Meanwhile, he is working on the third and final stage, which should “deliver the game as detailed in the whitepaper.”