American YouTuber and professional wrestler Logan Paul is facing renewed criticism from the creator community following allegations of a multi-layered fraud involving his fractional ownership platform, Liquid Marketplace.
The platform, which Paul co-founded to allow fans to buy small stakes in high-value collectables, is currently under intense scrutiny by the Ontario Securities Commission (OSC) for allegedly misleading investors and misappropriating millions of dollars.
The controversy centres on Paul’s recent decision to repurchase the world’s rarest Pokémon card, a PSA 10 Pikachu Illustrator, which he had previously sold to his fans as a collective investment.
Liquid Marketplace was launched by Paul and his partners with the promise of levelling the playing field for retail investors by offering tokens that represented “fractional ownership” (the practice of splitting an expensive asset into smaller, affordable shares) of rare items.
However, the OSC alleges that these tokens did not represent legal ownership and that the underlying assets were never properly authenticated or recorded on a blockchain (a digital, decentralised ledger used to track ownership).
Furthermore, regulators claim that the platform’s principles funnelled nearly $3 million of investor funds into personal luxuries, including high-end fashion and spa services.
Aspiring creators should note that Paul has historically used his massive digital footprint to promote various crypto-centric ventures, including the ill-fated CryptoZoo project.
In this latest instance, Paul claimed in a recent social media statement that he repurchased the Pikachu Illustrator card in May 2024 for a “substantial amount” intended for distribution to the fractional owners.
Despite this, many investors report they have not received a single rupee from the buyout, leading to accusations that the platform is experiencing a “liquidity crunch” (a situation where a company lacks the cash to pay out its obligations).
The timing of Paul’s repurchase has raised eyebrows across the industry, as the card is now scheduled for a high-profile public auction through Goldin Auctions in January.
Critics argue that Paul used the platform as a temporary financing tool to hold the card before reclaiming full ownership to reap the benefits of a future sale.
While Paul was not personally named in the OSC’s fraud allegations, the regulator has scheduled further enforcement proceedings for June 2026 to investigate the Toronto-based company’s operations.
Logan Paul, who currently boasts over 23 million subscribers on YouTube, has built a career on high-stakes stunts and “disruptive” business models. While he has successfully transitioned into professional wrestling with the WWE, his track record with digital assets remains a point of contention for market analysts.
