Emily Walker
Logan Paul, an American YouTuber and boxer, is facing renewed criticism for allegedly deceiving his followers regarding crypto investments. Recent findings indicate that Paul promoted certain tokens without revealing his financial stakes, reportedly earning over $100,000 in the process.
YouTuber Gains From Misleading Promotions
According to a report by the BBC published on Wednesday, Logan Paul is accused of misleading his audience in 2021 while endorsing crypto projects. The investigation revealed links between Paul and a crypto wallet that profited from the tokens he promoted online.
In May 2021, Paul highlighted an Elon Musk-themed memecoin called Elongate during a presentation in his subscription service, the Maverick Club. In his video, he enthusiastically stated, “Elongate made me rich. Elongate, baby, let’s go. Elongate token.”
Following his endorsement, the price of the memecoin surged by 6,000% but rapidly declined as investors rushed to cash in. Although the investigation could not verify his intentions, it indicates that Paul’s mention likely influenced the price of Elongate.
The BBC’s analysis of an anonymous crypto wallet indicated its connections to Paul, noting that it received funds from Paul’s public wallet in February 2021 to engage in cryptocurrency trading.
Allegedly, this wallet was compensated with resources from the Maverick Club and maintained a holding of Elongate during Paul’s promotion on May 10, 2021. Moreover, it engaged in trading another Elon Musk-related token after Paul claimed it was “going to the moon” on social media.
Shortly before Paul’s announcement, the wallet procured approximately $160,000 worth of Elongate and offloaded most of its holdings 12 hours later amid a price increase, purportedly netting about $120,000 in profit from this transaction.
Logan Paul’s Ongoing Crypto Controversies
This isn’t the first time Paul has faced accusations in the world of cryptocurrency. He has been entangled in legal issues related to his unsuccessful CryptoZoo Project, which resulted in investor losses nearing $4 million. Furthermore, in 2023, Time Magazine echoed similar findings to those of the BBC regarding another memecoin, Dink Doink, connected to a different anonymous wallet.
The investigation by Time noted a “close relationship” between the unidentified wallet and Paul’s public address, suggesting the wallet transferred substantial funds into his address after liquidating its Dink Doink tokens.
While Paul’s lawyer asserted the transfer had no ties to the memecoin sale, he did not refute Paul’s links to the anonymous wallet and acknowledged that Paul traded the token, allegedly earning only a $17,000 profit.
Despite the allegations surrounding Dink Doink, Paul avoided commenting on the BBC’s primary investigation for months. Eventually, he agreed to interact with their team, inviting them to his gym in Puerto Rico.
However, instead of Paul, the BBC team encountered a lookalike and faced verbal hostility from a group associated with him. Subsequently, Paul’s lawyer sent a warning letter to the BBC, cautioning of potential repercussions should they publish their findings.
Additionally, Paul has recently stirred controversy over Lunchy, a joint venture with YouTubers KSI and Mr. Beast, who has also faced allegations related to crypto scams.
