Logan Paul “Delivers” CryptoZoo Refund Promise, But You Can’t Sue Him Anymore
YouTube sensation and social media influencer Logan Paul has unveiled a refund program for disgruntled investors of his ill-fated CryptoZoo non-fungible token (NFT) game, pledging to personally commit over $2.3 million for the initiative. However, the catch is that participants must forfeit any legal claims against Paul in exchange for a refund.
In a recent post on X (fka Twitter), Paul acknowledged the disappointment surrounding the failed Pokémon-inspired NFT game, which was initially announced in August 2021. The CryptoZoo project aimed to create a play-to-earn game where players could buy, sell, breed, and trade exotic animals represented as NFTs.
The refund program, outlined on the website “EGGNFTBUYBACK.COM,” invites claimants to submit their Base Eggs and Base Animals for a buy-back at the original purchase price until February 8. Eligible participants will receive 0.1 ETH (approximately $224) for each qualifying NFT, with the terms specifying that hybrid animal NFTs and CryptoZoo-linked “ZOO” tokens are excluded from compensation.
Reading the terms and conditions of the claim form, the text specifically states that any CryptoZoo victim who claims a refund will be “waiving any actual or anticipated claims against Paul… arising out of or in connection with CryptoZoo.”
Conducting the refund doesn’t also “constitute an admission by Paul of [the victims’] legal entitlement to any amount, nor does it constitute an admission of any responsibility in connection with any actual or anticipated claims relating to CryptoZoo.”
“Not intended as an investment vehicle” but used to “make you money”
In his post, Paul clarified that the buy-back is not intended to reimburse those who viewed ZOO tokens as an investment. The terms and conditions also stipulate that claimants must agree to waive any current or future claims against Paul, a requirement that raised eyebrows among legal experts.
“This buy-back is a way for me to make whole those who intended to play CryptoZoo. The buy-back is not intended to compensate those who gambled on the crypto market and lost,” Paul said.
Rob Freund, a Los Angeles-based lawyer, commented on the situation, suggesting that Paul’s buy-back program might be an attempt to mitigate potential damages from the class-action lawsuit he faces. Freund noted that settling with individual claimants could significantly reduce Paul’s exposure in the pending case.
The irony is Paul used to describe CryptoZoo as a “game that makes you money,” as outlined in a class-action lawsuit against him and the platform founders in the Texas Western District Court. Don Holland, a police officer, is one of those who purchased the ecosystem digital asset ZOO token and saw his investment “rug pulled” by the defendants’ manipulation of the market.
“Defendants operated this fraudulent venture to exploit and steal from Plaintiff and other customers who trusted Mr. Paul’s false representations. As a result, Defendants defrauded Plaintiff and thousands of other consumers, and unjustly enriched themselves by profiting off Plaintiff and others without delivering on their promises,” the suit read.
In 2021, Holland learned about a new NFT project with Paul via his kid. Paul then touted CryptoZoo as a “game that makes you money,” with a “massive team” behind it and “like a million” dollars invested by Paul. When the firm released the ZOO tokens in August 2021, Holland invested an initial $1,000 and spent an additional $2,000 after the project launch date.
“Defendants’ scheme caused damages to Plaintiff and other consumers. Defendants knew consumers like Plaintiff would be convinced to purchase their products by Defendants’ false representations of profit and a functional game,” he added.
The proposed class action estimates “there is approximately 20,000 victims and on information and belief there are thousands in Texas” according to data.
“Hold these bad actors accountable”
Paul has also filed a cross-claim against CryptoZoo lead developer Eduardo Ibanez and Jake Greenbaum. In his post, Paul accused them of being “con artists” who sabotaged the project and pocketed millions, shifting blame away from himself.
“Mr. Greenbaum and Mr. Ibanez were con artists. Unbeknownst to Mr. Paul, both men lied about their resumes, knowledge, experience, and intentions. Through fraud and deceit, Mr. Greenbaum and Mr. Ibanez sabotaged the CryptoZoo project and prevented it from ever realizing Mr. Paul’s vision,” the lawsuit read.
The CryptoZoo saga, extensively documented by independent YouTube reporter Coffeezilla, unfolded as the game was left incomplete due to nonpayment to developers. Paul’s buy-back initiative comes almost a year after he initially promised a recovery plan for CryptoZoo, which he now confirms will never be released due to financial constraints and regulatory hurdles.
“As far as the game itself, unfortunately it will not be released. I personally spent $400,000 to have it developed and after its completion in early 2023 & some further diligence, unfortunately, there are too many regulatory hurdles that would need to be cleared that I did not originally understand and would ultimately delay this buy-back even further,” Paul relayed further.
While the refund program may provide some resolution for affected investors, it also raises questions about the implications of forfeiting legal claims against Paul. As the CryptoZoo story continues to unravel, participants face a challenging decision in determining the best course of action for their individual interests.
Paul is currently signed as a performer in the wrestling promotion WWE where he is the current titleholder of the United States Championship.
Information for this briefing was found via CoinTelegraph, TechCrunch, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
