Logan Paul’s Tokenization Firm Called ‘Multi-Layered Fraud’

Logan Paul faces scam claims over $16.49M Pokémon card sale and token fraud lawsuit.

  • Logan Paul is facing renewed “scammer” accusations for not sharing profits from the $16.49 million sale of a Pokémon card he once pitched to token investors.
  • His tokenization firm, Liquid Marketplace, is the target of a fraud lawsuit by the Ontario Securities Commission for allegedly misappropriating $3 million.
  • Paul has distanced himself legally from the firm, claiming he repurchased the card and had no insight into the regulatory scrutiny.
  • Critics have also questioned the card’s grading authenticity, alleging its perfect PSA 10 score is inflated due to Paul’s celebrity status.

Content creator Logan Paul is facing intense backlash and renewed fraud allegations following the $16.49 million auction of a rare Pikachu Illustrator Pokémon card in early 2026. The controversy stems from his previous association with the tokenization platform Liquid Marketplace, where he pitched the card as a co-ownership opportunity for investors.

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Users on X quickly reminded Paul of his earlier promises despite the terms and conditions stating otherwise. Consequently, the Ontario Securities Commission has launched legal action, labeling the firm a “multi-layered fraud” accusing executives of misappropriating $3 million.

Paul has consistently denied involvement, stating in December 2025 he had repurchased the card and had no “involvement or insight” into the regulatory case. He later gave his “facts,” clarifying that only 5.4% of ownership rights were sold for $270,000 and that he personally paid to restore the site for withdrawals.

Meanwhile, the buyer, AJ Scaramucci, revealed his own ambitious plans following the purchase, which he detailed in a tweet. The criticism continued online, with many users calling Paul a scammer, leading him to block several accounts, including a Pokémon news profile.

Additionally, streamer Mizkif believes the card’s perfect PSA 10 grade is itself a scam, arguing it would regrade to an 8 without Paul’s celebrity influence. He claimed the card’s quality was inflated simply because he’s Logan Paul.

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