A BBC investigation reveals that Logan Paul, a well-known social media celebrity, may have earned money by endorsing cryptocurrencies without disclosing his financial interest. The claims highlight dubious practices concerning his failing NFT project, Crypto Zoo, as well as high-risk tokens like Elongate and Ink Doink. The BBC’s investigation linked Paul to an unknown cryptocurrency wallet that allegedly made large profits from token trading both before and after his endorsements. One such instance was the Elongate token, whose value skyrocketed upon Paul’s promotion.
Just before Paul pushed the coin to his millions of YouTube followers, the anonymous wallet reportedly bought almost $160,000 worth of it. The wallet made a reported $120,000 profit when it liquidated its holdings after the price surge. The research raises serious moral and legal concerns, particularly in relation to the disclosure requirements for celebrities who promote digital assets.
Influencers are required by the U.S. Securities and Exchange Commission (SEC) to reveal whether they own the cryptocurrency they promote or have financial interests in it, including how much they are paid. In an unexpected turn of events, Paul allegedly dispatched a lookalike and orchestrated a bizarre protest at his Puerto Rican gym when the BBC approached him for an interview. This avoidance strategy only heightened the public’s increasing interest in the subject. These disclosures coincide with Paul’s ongoing legal disputes, especially those involving his doomed Crypto Zoo project. Investors sued this NFT game for millions of dollars after it promised players benefits but didn’t deliver. As the popularity of cryptocurrency increases, more influencers are coming under fire for their role in pushing erratic assets to their sizable followings, which can occasionally result in substantial losses for unwary investors.
Although Paul’s legal team has denied any misconduct, the growing accusations point to a more serious problem with responsibility among influencers who advocate for riskier investments. The Paul debate emphasizes the increasing necessity for precise laws to safeguard investors and maintain transparency as the cryptocurrency sector grows.
