Social media personality, Logan Paul, is under intense scrutiny after a BBC investigation revealed that he is involved in unethical practices surrounding cryptocurrency promotion.
The investigation uncovered evidence suggesting Paul, who is a brother to boxer – Jake Paul, profited from memecoin promotions without disclosing his financial interests. Specifically, a wallet linked to Paul reportedly made a $120,000 profit from the Elongate memecoin after purchasing tokens just before a promotional tweet that drove up its price.
Paul is currently embroiled in a class-action lawsuit related to CryptoZoo, a failed NFT project that investors claim was a fraudulent scheme. Despite initial promises to make things right, Paul has attempted to deflect blame onto project partners.
In response to the BBC’s investigation, Paul orchestrated a confrontation at a Puerto Rico gym during Hurricane Ernesto. Instead of engaging with reporters, he sent a lookalike and organized a crowd that verbally attacked the BBC team. Shortly after, Paul’s legal team sent a warning letter attempting to prevent the publication of investigative findings.
This isn’t an isolated incident in the celebrity crypto world. Other public figures like Kim Kardashian have faced legal consequences for undisclosed crypto promotions, with the SEC fining her $1.26 million for an unauthorized token endorsement. Iggy Azalea, Caitlyn Jenner, and Andrew Tate, have all been alleged of similar practices.
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Popular Nigerians like Davido and Sabinus have also been fingered in similar situations. Both launched memecoins that have gone on to lose about 90% of their values just days after launching.
Paul, who has 23 million YouTube subscribers, vehemently denies any wrongdoing. However, the mounting evidence and legal challenges suggest a pattern of potentially deceptive marketing practices in the volatile cryptocurrency market.
The case highlights growing concerns about celebrity-endorsed crypto projects and the need for greater transparency in digital asset promotions.