Logan Paul, the widely recognized social media figure, is encountering renewed scrutiny regarding his cryptocurrency transactions, as apprehensions persist about whether he may have gained financially by misleading his followers.
According to the BBC, new evidence indicates that he may have advocated for investments while failing to disclose his financial interests.
The impact of Paul, who boasts over 23 million followers on his YouTube channel, has driven a surge in prices for these investments. This has raised questions about the possibility that he may have benefited financially from selling any tokens in his possession.
Paul is embroiled in a multi-million-dollar lawsuit concerning a failed cryptocurrency venture, CryptoZoo.
The individual has refuted any allegations of misconduct.
Recent investigations by the BBC reveal that just before Paul’s tweet regarding a specific cryptocurrency in 2021, an anonymous crypto wallet closely linked to his public wallet executed trades involving that coin.
An anonymous wallet has reportedly generated a profit of $120,000 (£92,000).
Crypto wallets in physical devices or online services are secure repositories for users’ account keys, enabling individuals to send, receive, and spend cryptocurrency.
Our discovery follows a report by Time Magazine detailing comparable activity linked to a different cryptocurrency and an alternate anonymous wallet.
For several months, Paul declined to discuss our investigation with the BBC. He seemed to reconsider, inviting us to interview his gym in Puerto Rico.
Upon the crew’s arrival, a figure resembling Logan Paul appeared instead of the YouTuber, quickly followed by a crowd hurling insults directed at the BBC.
Shortly after the interview was abandoned, a letter from a lawyer representing Paul arrived, cautioning us about the potential repercussions of publishing our findings.
Memes concerning coinage
Logan Paul rose to prominence as a global internet sensation by creating short video clips, initially on the now-defunct platform Vine and subsequently on YouTube.
Approximately three years prior, Paul started increasingly referencing cryptocurrency, often called crypto, in his videos.
Cryptocurrency represents a digital currency operating on secure technological frameworks, eliminating the need for a central banking authority.
In 2021, Paul endorsed a collection of highly speculative cryptocurrency tokens called “meme coins.”
Typically, these phenomena draw inspiration from internet jokes or memes and receive backing from online communities. Meme coins serve primarily as tradeable assets, lacking any intrinsic value, which means their worth can plummet to zero at any moment.
Paul praised the merits of a meme coin inspired by Elon Musk called Elongate. “Elongate has significantly increased my wealth.” Elon, it’s time to move forward! In a recent video clip, Paul announced his exclusive fan club, the Maverick Club, which operates on a subscription basis.
In the wake of this mention, Elongate’s price surged by more than 6,000%, reaching an unprecedented peak. The price held steady for several hours before experiencing a significant drop.
The intentions behind Logan Paul’s release of his clip remain uncertain.
His reference to Elongate had an impact on its price.
According to tech journalist Will Gotsegen, social media and the presence of influencers influence the cryptocurrency market to a certain degree. “A prominent figure with significant sway, such as Logan Paul, invests heavily in cryptocurrency and shares this information with his followers.” They are also set to make a purchase.
An analysis conducted by the BBC reveals that the anonymous crypto wallet is closely linked to Paul.
The transactions associated with a wallet are visible to the public, yet the owner has the option to maintain their anonymity. When an owner links their name or personal information to a wallet, it transforms into a public wallet.
The wallet in question first received funds in February 2021 from a public wallet associated with Logan Paul. The entity subsequently began purchasing and trading cryptocurrency.
Logan Paul: negative influence?
Logan Paul, a prominent social media influence, is scrutinised for endorsing cryptocurrency initiatives. Matt Shea conducts an inquiry into the allegations.
In an investigative pursuit, Shea engages with law enforcement and alleged victims while attempting to gain insight from Logan Paul himself, all to address the pressing question: did Logan Paul commit any wrongdoing?
On May 10, 2021, Paul promoted Elongate, which subsequently received funds from Maverick Club.
Shortly after that, it traded another meme coin associated with Musk, following a tweet from Paul that proclaimed it was on a trajectory “to the moon.” Within the cryptocurrency community, this indicates a belief that the coin’s price is poised for a significant increase.
Approximately one hour before Paul’s tweet, an unidentified wallet acquired nearly $160,000 (£123,000) in the token. The tweet triggered a surge of buyers, resulting in a sharp price increase.
After twelve hours, the wallet liquidated the majority of its assets. The total profit generated from this trade exceeds $120,000 (£92,000).
Logan Paul has opted to remain silent on the BBC’s allegations concerning the crypto wallet, its trading activities, and his involvement, even as he addressed other enquiries through his legal representatives.
Dink Doink
In June 2021, Paul took to social media to promote a meme called “Dink Doink.”
Purchasing this item would grant individuals ownership of shares in a cartoon character that bore a striking resemblance to a metal coil. A share of the earnings would be allocated to them if featured in a television show or film.
Paul took to Twitter to advocate for the token, expressing his confidence in its potential to a Telegram group focused on Dink Doink. He stated, “I believe it’s going to go crazy.”
The situation resulted in a significant surge of buyers, dramatically increasing Dink Doink’s value.
Significant token holders initiated a sell-off in a development that echoes past trends, resulting in a staggering 96% decline in its price within two weeks.
Time Magazine analyzed an anonymous wallet that acquired Dink Doink before Logan Paul promoted the cryptocurrency and sold its holdings shortly after. A transfer of $100,000 (£78,000) was subsequently made from this wallet to Paul’s public wallet.
In a recent inquiry by the BBC, the influencer’s legal representatives refrained from denying ownership of the wallet in question or its association with him. However, they firmly asserted that the $100,000 transfer was unrelated to Dink Doink.
Sources confirm that Paul engaged in a trade involving Dink Doink, yet they assert that his earnings amounted to only $17,000 (£13,400).
Puerto Rico
Paul declined to participate in interviews with the BBC for an extended period.
Surprisingly, he consented to an interview at the boxing gym in Puerto Rico, which he co-owns with his brother.
We provided Paul with a list of the allegations requiring his response, and his public relations team requested that we travel to the Caribbean island for an in-person interview.
They maintained that we arrived on the island during the onslaught of Tropical Storm Ernesto, a weather event that had left hundreds of thousands without power.
During our time at the gym, an unusual atmosphere was palpable, characterized by an unsettling number of cameras seemingly directed at us. Paul’s assistant emphasized the necessity of having our cameras rolling as soon as the star stepped into the room, citing his rigorous schedule and punctuality.
Subsequently, the situation took an even more unusual turn. A lookalike of Logan Paul unexpectedly took a seat in front of our reporter, Matt Shea, and mimicked the YouTuber’s persona.
We confronted him and started voicing our concerns to Paul’s assistant, enquiring if the genuine Logan Paul would be making an appearance. Suddenly, a group emerged seemingly out of nowhere, brandishing banners and vociferously accusing the BBC of being “paedophiles.”