The lawsuit in Texas accuses the group of fraud, breach of contract, unjust enrichment, and more. The suit alleges that Paul and his associates manipulated the digital currency market for the Zoo Tokens and transferred millions of dollars of cryptocurrency into their wallets.
CryptoZoo "Rug Pull" Lawsuit Details
The lawsuit against Paul and his associates claims they executed a "rug pull" in their NFT scheme. The scheme falsely claimed that token holders would receive benefits in exchange for their cryptocurrency. Still, the project never materialized, and the defendants transferred the funds into their wallets. The plaintiffs also accuse the group of engaging in fraudulent representation, violating Texas's Deceptive Trade Practices Act, and unjust enrichment.
Class Action Includes 20,000 CryptoZoo NFT Holders
The proposed class action includes any of the 20,000 token holders of CryptoZoo's NFTs affected by the failed project. The filing seeks punitive damages and accuses the defendants of fraudulent, malicious, and reckless conduct that disregards the plaintiffs' rights. The lawsuit follows a series of investigative reports by YouTube journalist CoffeeZilla that alleged the project was fraudulent.