Both CryptoZoo and Logan Paul have been listed as defendants in a recently filed class action lawsuit. The claim argues that the defendants engaged in a “fraudulent business” that resulted in the theft of millions of dollars worth of cryptocurrency belonging to customers.

Plaintiff Don Holland alleged in a court filing that Paul and CryptoZoo (CZ) executives “executed a ‘rug pull'” by promising non-fungible token (NFT) buyers exclusive access to crypto assets among other benefits, but ultimately they abandoned the project and keeping the funds for themselves. The filing was made on February 2 in the District Court for the Western District of Texas.

“As part of Defendants’ NFT scheme, Defendants marketed CZ NFTs to buyers by falsely claiming that, in exchange For transferring cryptocurrency to purchase CZ NFTs, buyers would then receive benefits,” the document said. These benefits included, among other things, rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem to use and trade CZ NFTs. . .

It is alleged in the document that “in fact, shortly after completing the sale of all of their CZ NFTs, Defendants, along with others, transferred millions of dollars in cryptocurrency from the purchasers to, among other places, wallets controlled by Defendants.” . after the sale of all of the defendants’ CZ NFTs was completed.

The case was brought by attorneys from Ellzey & Associates as well as Attorney Tom and Associates, the latter of which is the name of the legal company owned and operated by Attorney Tom, a popular YouTube celebrity.

After “weeks of research and speaking with several Crypto Zoo victims,” attorney Tom revealed to viewers on January 16 in a video uploaded to YouTube that they would be filing a lawsuit against Paul in connection with alleged cryptocurrency fraud.

According to attorney Tom, the action also names Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King) and Ophir Bentov (Ben Roth) as defendants. All of these individuals are also being accused of wrongdoing.

This lawsuit was filed despite Paul revealing in a video posted to Twitter on January 13 a $1.5 million payback plan for disgruntled investors in the CryptoZoo business.

In addition to this, he revealed that he will no longer sue CoffeeZilla over the latter’s accusations that his project is a fraud. He said that suing CoffeeZilla “would not benefit Cryptozoo holders” and that he would instead want to focus on “friends and supporters of his.”

Paul said that his recovery strategy would be divided into three parts, adding that the first step will include him and Jeff Levin, the other co-founder of CryptoZoo, destroying all of their ZOO token holdings.

He stressed that as a result of taking this action, they would “have no financial advantage” in the game and that it would “increase the value of the holders’ chips.”

Paul said that the second step would involve him making a personal contribution of 1,000 ether (ETH) to the project. This, he said, will make it possible for “disappointed” investors to burn their NFTs to recoup their original investment of 0.1 ether, which is the cost of minting the NFT.

In the meantime, he’s working on the third and final stage, which should “deliver the game as detailed in the whitepaper.”