Social media star Logan Paul faces fresh scrutiny following a BBC investigation that revealed undisclosed profits from cryptocurrency promotions. The investigation uncovered evidence suggesting Paul may have benefited from promoting high-risk meme coins to his YouTube followers without revealing his financial interests.
According to the BBC’s findings, an anonymous crypto wallet closely linked to Paul’s public wallet traded in an Elon Musk-themed token shortly before his public endorsement. The wallet reportedly made a $120,000 profit following Paul’s promotion, which caused the token’s price to surge dramatically.
“Elongate made me rich. Elon baby let’s go!” Paul stated in a video to his Maverick Club members. Following this endorsement, the token’s price surged by over 6,000% before eventually crashing.
The anonymous wallet purchased approximately $160,000 worth of tokens just an hour before Paul’s tweet suggesting the price was headed “to the moon.” Within twelve hours of the price spike, the wallet sold most of its holdings, securing a profit of over $120,000.
The investigation raises serious questions about compliance with SEC regulations, which require celebrities to disclose their financial interests when promoting cryptocurrencies. SEC Chairman Gary Gensler emphasizes that influencers must reveal if they “get paid, how much they get paid, whether they own the tokens, [and] whether they made money on the tokens.”
What’s Next for the Crypto Industry After the US Election?When approached by the BBC to comment on these allegations, Paul initially agreed to an interview at his Puerto Rico gym. However, the meeting turned into an elaborate setup involving a lookalike and a crowd shouting abuse at the BBC crew, avoiding direct address of the allegations.
The revelations come amid Paul’s ongoing legal troubles, including a multimillion-dollar lawsuit over his failed CryptoZoo project, which attracted about $18.5 million in investment. This investigation adds to growing concerns about influencer accountability in cryptocurrency promotions, following similar cases like Kim Kardashian’s $1.26 million fine for undisclosed crypto promotions in 2022.
