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Logan Paul takes legal action amid CryptoZoo NFT game fallout

TL;DR

  • Logan Paul refunds CryptoZoo NFT investors $2.3 million after the game’s failure.
  • Lawsuit filed against CryptoZoo developers; Paul blames “bad actors.”
  • CryptoZoo won’t launch due to financial and regulatory issues.

YouTuber and influencer Logan Paul has revealed a $2.3 million refund initiative for disillusioned investors in his now-defunct CryptoZoo nonfungible token (NFT) game. This move comes a year after Paul initially promised a remedy for NFT buyers who had invested in the ambitious project, which was never released. 

The refund program aims to compensate those who had intended to participate in CryptoZoo by purchasing Base Eggs and Base Animals, providing them with a way to recoup their original investments.

Refund program details

Logan Paul’s refund program, which he has personally committed to funding, is designed to buy back Base Eggs and Base Animals at their original purchase prices for individuals who had intended to play CryptoZoo. The program attempts to address the disappointment experienced by investors after the game’s non-delivery.

To participate in the refund program, eligible NFT holders can submit their claims through the dedicated website, EGGNFTBUYBACK.COM, with a submission deadline of February 8th. Those deemed eligible will receive 0.1 ETH valued at $224 for each qualifying NFT submitted. Importantly, successful claimants must refrain from moving their eligible NFTs out of their wallets after they are deemed eligible.

However, it is crucial to note that hybrid animal NFTs are not eligible for the buy-back program, as specified in the terms and conditions. Furthermore, investors who held the CryptoZoo-linked “ZOO” token will not receive compensation under this program. The ZOO token has significantly depreciated, trading at a fraction of its all-time high.

Additionally, participants in the buy-back program will be required to waive any existing or future claims against Logan Paul and related personnel, as outlined in the program’s terms.

Legal actions

In an unexpected turn of events, Logan Paul announced in a recent social media post that he has filed a cross-claim lawsuit against Eduardo Ibanez and Jake Greenbaum, the lead developers of CryptoZoo, in a Texas federal court. 

This legal action follows an initial lawsuit initiated by a participant in February 2023, which alleged that Paul, Ibanez, Greenbaum, and two other team members engaged in a “fraudulent venture” to execute a “rug pull.” In response, Logan Paul shifted the blame to Ibanez and Greenbaum, alleging that “CryptoZoo was derailed by bad actors” responsible for nefarious trading activities.

Paul expressed his disappointment with the situation, emphasizing that he “never made a single penny from the project.”

CryptoZoo’s demise

Logan Paul’s buy-back program comes nearly a year after he first announced a recovery plan for CryptoZoo. However, despite these efforts, he has confirmed that CryptoZoo will not be released. The decision not to launch the project is attributed to financial constraints and regulatory hurdles that proved impossible.

CryptoZoo was initially introduced in August 2021 as a play-to-earn game, allowing players to buy, sell, breed, and trade exotic animals represented as NFTs using cryptocurrencies. Base Eggs, purchased by players, were intended to be hatched into Base Animals, which could be bred to yield $ZOO tokens daily. Notably, over $6.7 million worth of Base Eggs (3,009 ETH) were traded on the OpenSea platform.

Despite initial excitement and investment, CryptoZoo’s journey disappointed many eager participants to see the game come to fruition. Logan Paul’s commitment to refunding a portion of these investors’ losses through the buy-back program is an attempt to provide some restitution for the unfulfilled promises of CryptoZoo.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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