American YouTuber and boxer Logan Paul is once again facing backlash after being accused of misleading his fans about crypto investments. New evidence shows that Paul apparently promoted tokens without recognizing there was a financial interest, earning over $100,000 in the process.
YouTuber takes advantage of misleading fans
The BBC reported on Wednesday that social media personality Logan Paul allegedly misled his fans in 2021 when promoting crypto projects online. The investigation revealed apparent links between Paul and a wallet profiting from the tokens he shared online.
According to the report, Paul endorsed an Elon Musk-themed memecoin, Elongate, in May 2021 on his subscription-only fan club, Maverick Club. In the video, the YouTuber said: “Elongate made me rich. Lay down, baby, let’s go. Elongated token.
Logan Paul promotes Elongate memecoin in 2021. Source: Reddit
After the name drop, the memecoin price soared 6,000%, but quickly collapsed when investors began selling for profit hours later. The report notes that while his intentions cannot be proven, Paul’s mention appears to have affected Elongate’s price action.
The BBC analyzed an anonymous crypto wallet for its apparent connection to the internet star. The investigation revealed that the wallet received funds from Paul’s public wallet in February 2021 to begin trading cryptocurrencies.
The wallet allegedly “later received funds from Maverick Club and held Elongate when Paul promoted it on May 10, 2021.” Additionally, he also traded another Musk-themed token after the YouTuber posted on X that he was going “to the moon.”
Shortly before Paul’s post, the wallet acquired around $160,000 worth of memecoin and sold most of its holdings 12 hours later when the price of the cryptocurrency saw a surge. The wallet appears to have made a profit of around $120,000 from this transaction.
Logan Paul’s Long History of Crypto Controversies
These are not Paul’s first crypto-related accusations. In recent years, he has been embroiled in a lawsuit over the failure of his CryptoZoo project, which saw investors lose around $4 million. In 2023, Time Magazine made similar findings to the BBC regarding another memecoin, Dink Doink, and another anonymous wallet.
This investigation revealed a “cozy relationship” between the unknown wallet and Paul’s public address. The wallet “received a large portion of the funds that went to this address” as the anonymous wallet allegedly sent $100,000 to Paul’s address after he sold his Din Doink tokens.
The YouTuber’s lawyer told the BBC that the transfer had nothing to do with the sale of memecoin. However, he did not deny Paul’s ties to the anonymous wallet and admitted that he traded the token, allegedly only making $17,000 in profit.
Despite responding to Dink Doink’s accusations, Paul apparently refused to comment on the main BBC investigation for several months. According to the report, the social media personality then agreed to speak to the British media outlet’s team, inviting them to his gym in Puerto Rico.
Nonetheless, the BBC team was greeted by a Logan Paul lookalike and verbally abused by a group of his associates. His lawyer then sent a letter on behalf of the YouTuber, warning them “of the possible consequences if we published our findings.”
Paul has also faced recent online controversy for Lunchy, his collaboration project with YouTubers KSI and Mr. Beast, which was recently accused of crypto-related scams.
Bitcoin (BTC) is trading at $93,666 in the weekly chart. Source: BTCUSDT on TradingView
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