American YouTuber and boxer Logan Paul has landed in hot water yet again, facing accusations of deceiving his followers with cryptocurrency ventures. Recent revelations suggest that Paul may have promoted certain tokens without disclosing his vested financial interests, reportedly pocketing over $100,000 in the process.
YouTuber Allegedly Exploits Fans for Crypto Gains
According to an in-depth report by the BBC, Logan Paul, a prominent social media figure, is accused of misleading his audience back in 2021 through his endorsement of specific cryptocurrency projects. The investigation revealed potential links between Paul and a cryptocurrency wallet that profited significantly from the tokens he publicized.
In May 2021, Paul allegedly endorsed a memecoin themed after Elon Musk, known as Elongate, through his exclusive fan club, Maverick Club. In a promotional video, the YouTuber exclaimed, “Elongate made me rich. Elongate, baby, let’s go. Elongate token.”
Advertisement Banner
The mention of Elongate saw its value skyrocket by 6,000%, only to plummet once investors began to cash out their profits a few hours later. Although Paul’s intentions remain unproven, his endorsement appears to have significantly influenced Elongate’s market performance.
The BBC’s investigative team analyzed a crypto wallet with alleged ties to Logan Paul. They discovered that this wallet received transfers from Paul’s public wallet as early as February 2021, enabling cryptocurrency trading activities.
It is reported that the wallet received funds from the Maverick Club and held Elongate during Paul’s promotional period on May 10, 2021. Furthermore, it engaged in trading another Musk-themed token following a post by Paul on X about the token “going to the moon.”
Shortly before Paul’s promotional post, the wallet acquired approximately $160,000 worth of the memecoin and subsequently liquidated most of its holdings 12 hours later when the coin’s value experienced a sharp increase. The transaction purportedly garnered a profit close to $120,000.
The Ongoing Saga of Logan Paul’s Crypto Controversies
This is not the first time Logan Paul has been embroiled in crypto-related controversies. Over recent years, he has been tied to a lawsuit concerning his unsuccessful CryptoZoo Project, which allegedly resulted in investor losses amounting to around $4 million. In a similar vein, Time Magazine uncovered connections akin to the BBC’s findings regarding another memecoin, Dink Doink, and yet another anonymous wallet.
The investigation highlighted a “cozy relationship” between the mysterious wallet and Paul’s public address. Notably, the anonymous wallet reportedly transferred $100,000 to Paul’s address after liquidating its Dink Doink holdings.
Paul’s legal representative informed the BBC that this transaction bore no relation to the memecoin sale. However, the lawyer did not refute Paul’s connections to the anonymous wallet and confirmed that Paul engaged in trading the token, purportedly earning merely $17,000 in profit.
Despite addressing the Dink Doink allegations, Paul appeared to avoid commenting on the BBC’s primary investigation for several months. Eventually, the YouTuber agreed to meet the British media outlet’s team, extending an invitation to his gym in Puerto Rico.
However, upon arrival, the BBC’s team encountered a Logan Paul impersonator and faced verbal hostility from his associates. Subsequently, Paul’s attorney sent a letter on his behalf, cautioning the media outlet “of the possible consequences if we published our findings.”
In recent times, Paul has also faced backlash online regarding Lunchy, a collaborative project with fellow YouTubers KSI and Mr. Beast, who themselves have been accused of engaging in crypto-related scams.
“`
