Logan Paul is back in hot waters after a BBC report claimed he failed to disclose he was footing the bill for promotions of meme coins on his social media accounts. Paul is under scrutiny for undisclosed financial dealings involving his crypto-related business, which the company report, released Nov. 20, indicated might constitute ethical breaches.
New evidence links Paul to a number of high-risk crypto projects, according to the BBC report, which suggests he was promoting those tokens without telling people he had a financial interest. Once Paul began to issue endorsements, the tokens then had price surges, as was the case with numerous that an anonymous wallet tied to Paul has been sponsored.
CryptoZoo Lawsuit Adds Pressure to Logan Paul
The most notable instance in 2021 was May, when Paul pushed out a meme coin with a cryptocurrency named Elongate, based on Elon Musk. Paul, himself a member, video’d his excitement at ‘Maverick Club’ and explained in a video shared on his Maverick Club platform that ‘Elongate made me rich.’ Elon baby, let’s go!”
All of this happened just days after the endorsement, which saw the price of elastin surge 6,000% before it tanked almost immediately. During Elongate’s peak of $120,000, their investigation by the BBC suggests the distributing wallet associated with Paul cashed in Elongate tokens worth $120,000.
Paul has previously hyped a Musk-themed meme coin as having “a head to the moon.” An associated wallet bought nearly $160,000 worth of the coin hour before his social media post, cashing in on the subsequent spike, according to the report.
Another meme coin was backed by Paul in June 2021, Dink Doink, which he dubbed “going to go crazy” on X (formerly Twitter) and Telegram. Paul’s lawyers argued the transfer was unrelated to cryptocurrency but after the sale of the Dink Doink tokens, a wallet linked to Paul received a $100,000 transfer from a site called Skr.cl, according to the BBC’s findings.
Paul offered no direct response, the BBC reported. They tried to set up an interview, which they said ended in a “troll” encounter. When the BBC team arrived at Paul’s gym in Puerto Rico, the crowd was there and a Logan Paul impersonator, who the reporters were booed by.
These allegations come as Paul faces a brutal backlash to his CryptoZoo get involved, a cryptocurrency game-to-win NFT that is the subject of a multibillion dollar lawsuit. Investors lost for not being delivered on project promises were the critics of Paul. Paul, however, has denied that these were his words, instead claiming that the reasons for the project’s failures are the fault of other team members.
Following the CryptoZoo controversy, Paul revealed the buy-back plans for both Jan. 2023 and Jan. 2024, promising to refund holders of NFT. He stressed that the initiative was not serving as market loss compensation, though, but to remedy the project’s failures.
While Logan Paul is yet to comment on the latest allegations, at the Time Magazine they must be feeling the heat. But given that this is getting scrutinized, the case underscores wider worries about transparency in and ethics around influencer-led crypto pitches.
It’s a developing story arousing deep questions about the level of accountability in the crypto space and the part of public figures in driving high-risk investments.
