YEREVAN (CoinChapter.com) – The Logan Paul CryptoZoo saga continues with a fresh twist. Remember Logan Paul? He is a former wrestler turned Youtuber and crypto influencer, who was sued by disgruntled investors for an allegedly fraudulent NFT project CryptoZoo. A year after he promised NFT buyers recourse, he is finally ready to deliver. Or is he? Let’s see.
CryptoZoo Buyback Is Here If You Believe Logan Paul
As mentioned, Logan Paul has initiated a buyback program for the CryptoZoo NFTs, committing more than $2.3 million to this effort. This program aims to compensate investors who purchased Base Egg and Base Animal NFTs from the CryptoZoo project, which Paul announced back in 2021.
Paul has set up a website for investors to submit their claims, and the deadline for submissions is February 8, 2024. Those who participate in this program will receive 0.1 ETH (valued at around $224) for each eligible NFT. However, the terms specify that hybrid animal NFTs and holders of the CryptoZoo-linked “ZOO” token will not see compensation under this program.
Additionally, participants in the buyback MUST waive any current or future legal claims against Paul and related personnel. This move might be a strategy to minimize potential legal repercussions, as Paul faces a class-action lawsuit related to the CryptoZoo project.
In this lawsuit, Paul has shifted the blame to CryptoZoo’s lead developers, Eduardo Ibanez and Jake Greenbaum, alleging their involvement in fraudulent activities that derailed the project.
CryptoZoo was derailed by bad actors. Bad actors who DID steal money and who betrayed our team while internally sabotaging the game. This has now been confirmed by an extensive investigation that has involved forensic analysis of blockchain activity and the review of thousands of communications.
Paul said in the latest tweet.
What Happened to The NFT Project?
Paul has also confirmed that CryptoZoo will not be released, citing financial constraints and regulatory hurdles as the main reasons. He has emphasized that he never profited from the project, and the decision to cancel the game was due to trading activities carried out without his knowledge.
This development follows a period of controversy surrounding the CryptoZoo project. Users accused Paul and his associates of promoting a game that they never finished developing, and players were unable to use their purchased NFTs as promised.
The situation garnered significant attention, particularly after an investigation by YouTube reporter Coffeezilla (Stephen Findeisen), which highlighted various issues with the project.
In detail, Logan Paul has an extensive online following which includes 23 million subscribers on Youtube and 6.7 million followers on Twitter. The former wrestler advertised the NFT project on his outlets, promising a “fun and entertaining way” to earn money through P2E gaming.
However, an increasing number of ZOO token purchasers faced the fact that the project did not deliver on the promise. The game did not work, and the creators’ intentions came into question.
Defendants promoted CryptoZoo Inc.’s products using Mr. Paul’s online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products. Unbeknownst to the customers, the game did not work or never existed,
read the class action motion.
and Defendants manipulated the digital currency market for Zoo Tokens to their advantage.
Plaintiff Don Holland also alleged that the project was indeed a “rug pull.” So, Logan Paul faced a lawsuit for his role in CryptoZoo and the supposed “theft” of millions of investors’ crypto assets.
