Logan Paul Offers Refunds For Failed Cryptozoo Nft Game
Logan Paul has revealed a plan to issue refunds for his unsuccessful and controversial NFT venture, CryptoZoo, a Pokémon-like NFT game he launched in 2021. However, recipients of these refunds must agree not to pursue any legal action against him. In a recent X (former Twitter) statement, Paul declared his intention to “personally commit” more than $2.3 million to buy back the NFTs originally sold through CryptoZoo, inviting claim filings through an online form until February 8.
Paul has adamantly stated he never profited from CryptoZoo. Instead, he claims he lost substantial sums trying to bring the game to fruition. He expressed his own disappointment that the game never launched. Those who file claims will be reimbursed with 0.1 ETH for each “Base Egg” or “Base Animal” NFT they own. Unfortunately for some, “Hybrid” animals derived from these NFTs are excluded from the buy-back offer.
The terms and conditions stipulate that any NFTs Paul judges as ineligible will not be returned to the claimants. Additionally, to qualify for the refund, individuals must waive any potential legal claims against Paul in relation to the CryptoZoo game. Amidst the legal turmoil, including a class-action lawsuit accusing Paul of promoting a fraudulent game, he has filed a cross-claim to hold certain individuals answerable for wrongdoing related to the project.
Paul’s recent X post detailed a federal lawsuit he filed in Texas, aiming to target “bad actors” responsible for “nefarious trading activity” that occurred without his knowledge, accusing them of fraud. Los Angeles lawyer Rob Freund, who specializes in representing brands and creators, suggests that Paul’s buy-back scheme might be an effort to decrease potential damages from the class action lawsuit. By settling individually with class members who accept the refund, Paul could significantly lower his financial risk in the ongoing legal case.
Logan Paul is being sued in a class action about the CryptoZoo NFT disaster.
Today, he filed an Answer & Cross-Claim in that same case (which he's calling "a lawsuit in federal court in Texas to hold these bad actors accountable").
The Egg buyback may be a strategy to take some… https://t.co/uTQ15vFKW4
— Rob Freund (@RobertFreundLaw) January 4, 2024
Despite the current litigation, Paul has joined the legal fray with a countersuit, striving to hold “bad actors” accountable for their roles in the CryptoZoo debacle. He continues to assert his right to rectify damages, as stated in his recent posts on X. Rob Freund points to the NFT buy-back plan as a strategic maneuver to mitigate liability.
The initial promotion of CryptoZoo painted it as an engaging and lucrative game built on the Ethereum blockchain, where players would acquire, breed, and even monetize virtual animals. The game was set to feature interactive minigames and eventually expand into the metaverse. Nevertheless, the project unraveled amid allegations of market manipulation, breached promises, and a lack of developer payment — all of which was uncovered by investigative YouTube reporter Coffeezilla.
Coffeezilla’s report showed that two anonymous accounts benefitted greatly from the game, receiving hundreds of thousands of dollars in ETH, while a significant cache of $ZOO tokens remained tied up for ostensible charity and game development efforts. Paul initially blamed another developer for the scam but later accepted “accountability,” proposing to repay investors and complete the unfinished game.
My 3-step plan for CryptoZoo, including a $1.3M rewards program for disappointed players.
Thank you, @coffeebreak_YT pic.twitter.com/xFX017UHoc
— Logan Paul (@LoganPaul) January 13, 2023
Last year’s class action lawsuit, filed in the Western District of Texas, accuses Paul and his associates of exploiting the inexperience of consumers and manipulating the market for their own gain. In his defense, Paul labeled CryptoZoo collaborators Jake Greenbaum and Eduardo Ibanez as deceitful “con artists” who undermined the project while enriching themselves. Despite his heavy personal financial loss, CryptoZoo won’t see the light of day, Paul admitted, due to the impracticality of overcoming regulatory barriers he hadn’t originally foreseen.
Clarifying his intentions, Paul reminded everyone that CryptoZoo’s associated Zoo Token was never meant to be an investment. With regulatory obstacles too great to surmount for a game revival, he views the refund program as a means to rectify matters with those who had genuine interest in playing the game, rather than compensating those who merely speculated on cryptocurrency markets.
