Logan Paul has distanced himself from his tokenization firm after he was branded a scammer for not giving users a cut of the profits from his $16 million Pokemon card auction.
His record-breaking auction saw the card sold to AJ Scaramucci, son of Skybridge Capital founder Anthony Scaramucci.
However, users on X were quick to remind Paul that he once pitched the Pikachu Illustrator card to investors of his tokenisation firm, Liquid MarketPlace, as an asset they could co-own.
This is despite the terms and conditions stating otherwise.
Two years later, the Ontario Securities Commission (OSC) launched legal action against the firm, calling it a “multi-layered fraud.”
It claimed that its executives misappropated $3 million by moving it to their shell companies and spending the funds on watches, spas, and other luxury goods.
AJ Scaramucci spent $16.49 million buying Logan Paul’s Pokémon card and the diamond necklace it came with.Read more: Logan Paul fakes $1M Super Bowl bet on Polymarket
Notably not present in this legal action, however, is Logan Paul. Indeed, last December, Paul claimed that he’d repurchased the card from Liquid Marketplace and that afterwards, he had no “involvement or insight” with the regulatory scrutiny as “it does not relate to me.”
Users were also struggling to withdraw their funds from the firm but last Wednesday, Paul stated that unclaimed funds can now be withdrawn
Paul gave his “facts” on the card’s ownership today by more or less repeating what he said in December. He added that out of the supposed 51% of ownership rights up for sale, investors only spent $270,000 buying 5.4%.
What he didn’t mention was the enforcement proceedings brought by the OSC.
“For reasons outside of my control, the LM site then went offline. When I learned users could no longer withdraw their funds on LM’s site, I personally paid to get the site back up,” he said.
Paul reiterated that funds can now be withdrawn and wrapped up by congratulating Scaramucci. He said, “Although bittersweet, I was proud to be a steward of the greatest collectible in the world for the last five years.”
The post only has two replies congratulating Paul, as he’s disabled comments from users he doesn’t follow. People quote tweeted the post, however, continued to call him a scammer.
Read more: Logan Paul fight can make NFT holder $300K as CryptoZoo victims left on ice
Paul was also caught blocking multiple X users who were calling him a scammer, including a “Pokémon news and alerts” account that claimed “Logan Paul has to be the worst thing to ever happen to Pokémon.”
To top it off, in the eyes of the streamer “Mizkif,” the card itself is a scam.
He believes Paul has managed to get it regraded twice and that, simply because he’s Logan Paul, it’s been pushed from a PSA rating of 8, to a 10. This is the classification system that grades the quality of the card.
Mizkif said, “If you get this regraded, not as Logan Paul, it’s an 8, 8.5. It’s not that good of a card.”
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Source: https://protos.com/logan-paul-faces-scam-accusations-after-16m-pokemon-card-sale/
