In January of 2023, the popular YouTuber CoffeeZilla uploaded a three-part series exposing the controversies surrounding Logan Paul’s CryptoZoo project. The project, which involved the sale of egg NFTs for an upcoming game, attracted thousands of customers eager to participate. However, the excitement quickly turned into disappointment as the social media accounts associated with the platform went dark, and Logan Paul himself remained silent on the project’s status.
CoffeeZilla’s videos shed light on the alleged deception behind CryptoZoo, leading Logan Paul to announce his plans to sue the YouTuber. However, this move backfired as purchasers of both CryptoZoo NFTs and the related cryptocurrency $ZOO filed a class-action lawsuit against Paul. The lawsuit also implicated other celebrities who had endorsed the project, accusing them of promoting a game that either did not work or never existed.
The complaint argued that the defendants had leveraged Mr. Paul’s online platforms to market CryptoZoo products to consumers unfamiliar with digital currency, resulting in tens of thousands of purchases. Unbeknownst to the customers, the game failed to deliver on its promises, and the defendants allegedly manipulated the digital currency market for their own gain. The plaintiffs demanded the disgorgement of any revenue, profits, or other ill-gotten gains from the defendants’ scheme.
Updates on these legal battles had been scarce, leaving the public wondering about the fate of those affected by the CryptoZoo debacle. However, recently, Logan Paul broke his silence, revealing a surprising development in the form of refunds for NFT holders. On the 4th of January, Paul announced that he had earmarked $2.3 million specifically for the purpose of refunding buyers of his NFTs.
While the announcement of refunds offered a glimmer of hope for affected individuals, there was a catch. Paul made it clear that the 0.1 ETH/NFT refund would only be given to holders who had not used their NFTs to create hybrid animals within the allegedly non-functional game. Essentially, those who had attempted to derive some enjoyment from the limited features of the game would not be eligible for a refund.
Moreover, holders of the $ZOO token, the related cryptocurrency, would receive no compensation whatsoever. Paul insisted that he had not profited from the project and placed the blame squarely on two members of his team, Ibanez and Greenbaum, accusing them of attempting to “rugpull” the project. As a result, he initiated a cross-claim lawsuit against them to seek legal recourse.
Confirming what had been speculated by CoffeeZilla a year earlier, Logan Paul revealed that the CryptoZoo game had ultimately met its demise and would never see a full release. He attributed the failure of the game to “regulatory hurdles,” although it is probable that other factors also contributed to the ultimate downfall of the project.
Logan Paul’s CryptoZoo project started with immense hype and fanfare but quickly unraveled, leading to legal battles, disappointed customers, and a game that never materialized. The announcement of refunds, albeit with limitations, shows an attempt by Paul to rectify the situation. Nevertheless, the saga of CryptoZoo serves as a cautionary tale about the risks and uncertainties surrounding the world of digital assets and celebrity-endorsed projects.