Logan Paul Facing Lawsuit from Investors of CryptoZoo Project

Investors, led by plaintiff Don Holland, have filed a class action lawsuit against Logan Paul, CryptoZoo Inc., and other executives. The lawsuit alleges that the defendants executed a "rug pull," taking advantage of Paul's large following to promote and sell digital currency products that they claimed never actually existed. The plaintiffs assert that the executives manipulated the market for these products and falsely promised benefits to buyers before suddenly abandoning the project and retaining their funds. 

The recovery plan released by Paul, which involved burning some NFTs and creating a reward program, was criticized by the plaintiffs as excluding the most valuable NFTs and only compensating a portion of the affected investors. Paul has defended himself by saying that the NFTs were not intended to be an investment and that he had no control over when they were bought or sold.