ZachXBT: Outdated laws allow bad actors to exploit judicial discrepancies and continue misconduct in the crypto space

Foresight News reported, according to Dexerto, that the lawsuit against influencer Logan Paul regarding CryptoZoo has been dismissed by a federal judge, who stated that "the jury cannot find Logan Paul's statements to be misleading or fraudulent." ZachXBT commented that outdated laws allow bad actors to exploit jurisdictional differences in the crypto space to continue their misconduct. He added that if a promoted project ties its token value to promised deliverables but fails to deliver substantive content, resulting in significant financial losses, accountability should be enforced. This case should have been straightforward, but it exposes systemic flaws. Bittex stated that this outcome could set a dangerous precedent. ZachXBT replied that he is concerned the Bittensor hack case may be similar, as privacy protocols and instant swap processes are complex, making it difficult to explain why the hacker's deposit amount matches the amount withdrawn by a former employee from the privacy protocol.

According to previous Foresight News reports, court documents show that YouTube star and professional wrestler Logan Paul and his associates were named in a proposed class action lawsuit for promoting the sale of the NFT project CryptoZoo. The plaintiffs' attorneys claimed that Paul and his associates conducted a "rug pull," where developers attract token or NFT buyers by promising certain benefits, but CryptoZoo never operated or existed, and the developers absconded with the funds. The plaintiffs accused Paul and his associates of fraud, engaging in fraudulent misrepresentation, conspiracy to commit fraud, violating the Texas Deceptive Trade Practices Act, and unjust enrichment.