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In January of 2023, YouTuber CoffeeZilla posted a three-part series on Logan Paul’s CryptoZoo project.
To participate in the upcoming game of the same name, customers had to purchase egg NFTs, which would then hatch, allowing the purchaser to play with and breed the animal.
Rumors of a Rugpull
However, the social media accounts associated with the platform had gone dark, and Logan Paul allegedly avoided talking about the project. After CoffeeZilla’s videos on the subject, Paul announced his plans to sue the YouTuber – and was, in turn, met with a class-action lawsuit filed by purchasers of both CryptoZoo NFTs and buyers of the related cryptocurrency $ZOO.
Several other celebrities who had also been involved in the promotion of the project were also mentioned in the proceedings.
“The Defendants promoted CryptoZoo’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, and the Defendants manipulated the digital currency market for Zoo Tokens to their advantage. Due to these unconscionable practices, Defendants should disgorge any revenue, profits, or any other gains from their scheme.”
Updates on both court cases have been scarce – up until today, when Logan Paul announced that he would be refunding those who bought his NFTs as long as they waived their right to sue him.
NFT Holders to Be Refunded, $ZOO Holders Left Out
On the 4th of January, Logan Paul announced on X that he had set aside $2.3 million in order to refund those who bought into his project.
However, the refund of 0.1 ETH/NFT – which is the price these NFTs were originally sold for on launch – could only be given to holders who had not used theirs to create hybrid animals. In other words, if you tried to make the best of the situation and enjoy the bare-bones and allegedly non-functional game, tough luck. Holders of the $ZOO token would also receive no compensation.
Paul reiterated that he had not made “a single penny” off of the project and lambasted two members of his team, Ibanez and Greenbaum, for attempting to rugpull it. He has since taken legal action against the pair by means of a cross-claim lawsuit.
As for the CryptoZoo game itself, Paul has now confirmed what was originally suggested by CoffeeZilla a year ago – the game is dead and will never be fully released. According to him, this is due to “regulatory hurdles,” although it’s quite likely that other factors also delayed – and eventually killed – the project.
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