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 acknowledging he had a financial interest in them, making more than $100,000 in the process.
YouTuber takes advantage of misleading fans
The BBC reported On Wednesday, social media personality Logan Paul allegedly misled his fans in promoting crypto projects online in 2021. The investigation revealed clear links between Paul and a wallet that profited from the tokens he shared online.
According to the report, Paul endorsed an Elon Musk-themed memecoin, Elongate, to his subscription-only fan club, Maverick Club, in May 2021. In the video, the YouTuber stated, “Elongate made me rich. Elongated, honey, let’s go. Oblong sign.”
Logan Paul promotes Elongate memecoin in 2021. Source: Reddit
After the namedrop, the memecoin’s price rose 6,000%, but quickly collapsed when investors started selling at a profit a few hours later. The report notes that even if his intentions cannot be proven, Paul’s mention appears to have had an impact on 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 start trading cryptocurrencies.
The wallet was “later paid for by the Maverick Club and held by Elongate when Paul promoted it on May 10, 2021.” Additionally, it also traded another Musk-themed token after the YouTuber posted on X that it was “going to the moon”
Shortly before Paul’s post, the wallet acquired about $160,000 worth of memecoin and sold off most of its holdings 12 hours later, when the cryptocurrency’s price saw a price spike. It appears that the wallet made around $120,000 in profit 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 involved in a lawsuit over his failed attempt CryptoZoo Project, where investors lost about $4 million. In 2023, Time Magazine made similar findings to those of the BBC about another memecoin, Dink Doink, and another anonymous wallet.
This research found a “cozy relationship” between the unknown wallet and Paul’s public address. The wallet “received a large portion of the money going to that address” as the anonymous wallet reportedly sent $100,000 to Paul’s address after selling the Din Doink tokens.
The YouTuber’s lawyer told the BBC that the transfer was not related to the sale of memecoins. However, he did not deny Paul’s connections to the anonymous wallet and admitted that he traded the token and reportedly only made a profit of $17,000.
Despite addressing Dink Doink’s allegations, Paul refused to comment on the BBC’s main investigation for months. According to the report, the social media personality later agreed to talk to the British media team and invited them to his gym in Puerto Rico.
Nevertheless, the BBC team was instead confronted by a Logan Paul lookalike and verbally attacked by a group of his staff. His lawyer then sent a letter on behalf of the YouTuber warning them “of the potential consequences if we were to publish our findings.”
Paul has also faced recent online controversies over Lunchy, his collaborative project with YouTubers KSI and Mr. Beast, that one 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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