Logan Paul Accused of Misleading Followers with Crypto Investments

Logan Paul, a prominent social media influencer with over 23 million YouTube followers, faces allegations of profiting from cryptocurrency promotions without disclosing his financial interests, according to a BBC investigation.

The claims suggest Paul's endorsements of high-risk tokens, including Elongate, Ink Doink, and his failed NFT project CryptoZoo, may have artificially inflated their values, enabling him to profit from subsequent sales.

These accusations raise serious ethical concerns about the transparency and accountability of influencer-driven crypto promotions.

Tech journalist Will Gotsegen highlights the significant role social media influencers play in shaping the volatile cryptocurrency market.

He noted:

“A big guy with a lot of influence... someone like Logan Paul, buys a tonne of crypto and tells their followers about it. They're going to buy it too.”

While Paul's legal team denies any wrongdoing and has issued warnings against disseminating these allegations, the controversy continues to escalate, particularly as crypto investments gain traction among younger audiences.

Shrouded Transactions and Dubious Profits

A BBC investigation has allegedly uncovered evidence tying Paul to an anonymous cryptocurrency wallet through transactions linked to his public wallet.

The anonymous wallet reportedly purchased tokens before Paul promoted them to his YouTube audience, selling them at a profit after their value spiked.

One notable example cited in the report involves Paul's 2021 endorsement of the meme coin Elongate.

Before the promotion, the anonymous wallet allegedly acquired $160,000 worth of the token, later making a $120,000 profit through a post-endorsement sell-off.

This discovery follows a similar report by Time Magazine, which detailed comparable activity involving another cryptocurrency and an anonymous wallet.

Crypto wallets—digital tools for storing and managing private keys that enable users to send, receive, and spend cryptocurrencies—are at the center of these allegations, raising questions about transparency and ethical practices in influencer-driven crypto endorsements.

Paul Sends Lookalike to BBC Interview Along with Staged Protest

Paul evaded BBC inquiries for months regarding their investigation before appearing to agree to an interview at his Puerto Rico gym, co-owned with his brother.

However, when the BBC crew arrived, they were met with a Logan Paul impersonator instead of the influencer himself.

This was followed by a staged protest involving individuals shouting accusations at the BBC.

The team observed an unusual number of Paul's cameras aimed at them during the visit and, after inquiring whether Paul himself would appear, they were confronted by a group waving banners and yelling inflammatory claims against the BBC.

BBC crew can be heard saying:

“We had flown all that way just to be trolled.”

Shortly after the disrupted meeting, the BBC received a legal notice from Paul's representatives, warning of potential repercussions should their findings be published.

This bizarre series of events raises questions about Paul's motives and the extent of his involvement in the allegations under investigation.

The CryptoZoo Fiasco: Lawsuit Unfolds

In his documentary 5 Months with Logan Paul, the influencer defended CryptoZoo, asserting it was not a scam while acknowledging there was "an element of truth" to the accusations.

The NFT-based game became the subject of a multimillion-dollar lawsuit filed by at least 130 investors, who claimed over $4 million in losses due to undelivered promises.

Despite maintaining his innocence, he has proposed a $2.3 million buyback initiative to repurchase NFTs at their original price in an attempt to address investor grievances and resolve the controversy.

However, this offer came with a condition: investors would have to waive their right to pursue further legal action against him or CryptoZoo.

Paul has denied allegations of fraud, shifting blame onto the game's developers.

He said:

“I'm going to take care of the people who made me look like this was a scam perpetrated by me. I didn't make any f***ing money, bro. I lost half a million dollars on this.”

So is the controversial social media star a calculated manipulator or an unwitting participant in a larger scheme?