Logan Paul Faces Growing Scrutiny Over Crypto Promotions and NFT Controversy

Logan Paul, a popular social media figure, is under scrutiny for allegedly profiting from cryptocurrency promotions without revealing his financial ties, as reported by the BBC.

The controversy revolves around his endorsements of risky tokens such as Elongate and Ink Doink, as well as his failed NFT project, CryptoZoo, which has drawn significant attention due to claims of unfulfilled promises to investors.

The investigation claims that Paul is connected to an anonymous crypto wallet, which reportedly purchased tokens before they were promoted to his massive YouTube audience of 23 million followers. After these tokens saw a price surge following Paul’s endorsement, the wallet is said to have sold its holdings for a profit.

One specific example highlighted by the BBC was his promotion of Elongate in 2021, where the wallet allegedly bought $160,000 worth of the token and made a $120,000 profit after the price spiked post-promotion.

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Paul’s legal team has dismissed the allegations, warning against publishing any unverified claims. Meanwhile, the controversy has intensified, fueled by the growing popularity of crypto, particularly among younger audiences. In an attempt to speak with Paul, the BBC’s efforts were met with bizarre antics, including a lookalike being sent to his gym in Puerto Rico and a staged protest accusing the news outlet of inappropriate behavior.

Additionally, Paul’s involvement with CryptoZoo has sparked a multimillion-dollar lawsuit. Investors allege that the NFT-based game failed to deliver on its promises, leading to financial losses. More than 130 individuals are suing Paul for over $4 million in damages. In response, Paul announced a “buy-back” program in January 2024, offering to repurchase the NFTs at their original price—but with the condition that investors waive their right to pursue further legal action.

Kosta Gushterov