Logan Paul's Company Was Just Found Guilty Of Fraud

Summary

Karl Jobst reviews the Ontario Capital Markets Tribunal’s September 30, 2026, decision concerning Liquid Marketplace (LMP), a platform co-founded and promoted by Logan Paul that offered fractional ownership of rare collectibles through blockchain tokens.

The tribunal found that LMP and co-founder Bahadori committed securities fraud by misrepresenting the rights attached to its tokens and the underlying collectibles. It also found that co-founder Nickell participated in the fraud, and that LMP illegally traded and distributed securities and operated a marketplace without the required registration or approvals. The tribunal further found that Nickell made a materially misleading statement to investigators about compensation received from the company.

Pikachu Illustrator card

Jobst highlights the Pikachu Illustrator card promoted by Paul. LMP reportedly gave users the impression that it had sold $2.5 million in fractional tokens tied to the card, but the actual amount was about $250,000. Paul later bought back the fractional share for $250,000, despite the earlier promotion suggesting a much higher value. The card subsequently went to auction.

Jobst says LMP raised $10 million from investors but generated only $2.7 million in revenue.

Logan Paul’s involvement

The tribunal’s decision did not name or rule against Logan Paul personally. Jobst notes that Paul repeatedly promoted LMP as his company and made claims similar to those the tribunal found fraudulent, but says it is unknown what Paul knew about the company’s conduct.

Jobst also questions whether Paul’s 2024 buyback was connected to the coming investigation, while making clear that this is speculation. He criticizes Paul for not publicly acknowledging the ruling.

A further hearing was scheduled for January 2027 to determine sanctions and costs for LMP and its officers. As Paul was not named in the complaint, the video says he faces no sanctions in this proceeding.

Presenters and contributors

• Karl Jobst — presenter and narrator
• Logan Paul — archival promotional clip
• Andrew Tate — brief archival clip