The Jail 🚔 Heist 🎭

GM Guys and Gals,

Famed internet personality Logan Paul and NFT project CryptoZoo have been accused of engaging in a “rug pull” in a new class-action lawsuit. Here’s everything you need to know about [👇🏻]

Announced in September 2021, CryptoZoo was marketed as an NFT-based game and billed as “an autonomous ecosystem” that would enable virtual ZooKeepers to buy, sell, and trade exotic animals on the blockchain, hatching them from eggs at the time of purchase.

A filing made in the District Court of the Western District of Texas alleged that the defendants “executed a ‘rug pull’,” promoting CryptoZoo’s products using Paul’s online following “to consumers unfamiliar with digital currency products, leading to tens of thousands of people” purchasing these.

A “rug pull” is a colloquial way of describing instances when a crypto developer raises funds, for example, for a new token or NFT line, promising certain benefits to consumers, but then the developers abandon the project and fail to deliver the promised benefits, while fraudulently retaining the buyers’ funds.

The filing then claimed that “unbeknownst to the customers, the game did not work or never existed, and Defendants manipulated the digital currency market for Zoo Tokens to their advantage.”

In addition, the filing alleged that soon after completing the sale of all their NFTs, the defendants then transferred the money to wallets controlled by the defendants.

That’s it for the day, Web3Shala 👋

To the Moon 🚀