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CryptoZoo, along with Logan Paul, has been named as a defendant in the newly filed class action lawsuit.
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The report claims they stole millions of dollars worth of buyers' cryptocurrency through a "fraudulent business."
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In a filing filed by a judge on February. 2. District Court of the Western District of Texas.
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The plaintiff Don Holland alleged that Paul and the executives of CryptoZoo "executed a 'rug draw'" by promising purchasers of non-fungible tokens accessibility to cryptocurrency assets, among other benefits.
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However, they ultimately walked away from the venture and retained the money.
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"As part of Defendants’ NFT scheme, Defendants marketed CZ NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to purchase the CZ NFT."