Logan Paul has initiated a refund program for CryptoZoo, the Pokémon-inspired NFT game that faced failure and allegations of fraud since its launch in 2021. However, there’s a significant condition attached – claimants must waive any rights to sue him in exchange for a refund.
In a recent X (formerly Twitter) post, Paul declared his personal commitment of over $2.3 million to repurchase NFTs acquired through CryptoZoo. The deadline for submitting claims online is set until February 8.
Paul stated in his post, “I never made a single penny from the project, period. In fact, the opposite is true because I spent hundreds of thousands of dollars trying to make it happen. Like you, I was highly disappointed that the game was not delivered.”
Participants filing claims will receive 0.1 ETH per eligible NFT, categorized as “Base Eggs” and “Base Animals.” The concept was for players to “breed” animals from the base NFTs, creating “hybrid” animals, also represented as NFTs. It’s important to note that hybrid animals are not covered under the buy-back program.
However, the terms and conditions of the form mention that NFTs deemed “ineligible” by Paul at his sole discretion will not be refunded. To qualify for a refund, claimants must also agree to waive any present or future claims against Paul, essentially promising not to pursue legal action related to CryptoZoo.
Facing a class-action lawsuit for allegedly profiting millions by promoting a non-existent game, Paul has also filed a cross-claim. In another X post, he mentioned filing a lawsuit in federal court in Texas to hold accountable those he considers bad actors.
Paul stated in the X post, “This lawsuit is the result of an exhaustive investigation that included the review of the entirety of conversations and tracking nefarious trading activity related to the project—nefarious trading activity taken behind our backs, without our knowledge, and with the intention of defrauding us all.”
Legal experts suggest that Paul’s buy-back program might be an attempt to minimize damages. Class-action lawsuits can be financially devastating for defendants, potentially including initial losses, punitive damages, and attorney fees. By refunding NFTs in exchange for waiving claims against him, Paul may be seeking individual settlements with class members to reduce potential damages.
When Paul initially introduced CryptoZoo in August 2021, he described it as a “really fun game that makes you money.” The game was marketed as an Ethereum-based collecting game, where each NFT represented an egg that would hatch into an animal with various levels of rarity. However, the game was never completed, and controversies arose, including developers quitting due to nonpayment, alleged market manipulation plans, and players being unable to breed or cash out.
In response to the unfolding situation, Paul accused a CryptoZoo developer of scamming the team but later promised accountability. The class-action lawsuit filed against him alleges that Paul and associates promoted the project to consumers unfamiliar with digital currency, manipulating the market to their advantage. HAH HAH HAH HAH HAH HAH HAH HAH
In his recent response and cross-claim, Paul accused CryptoZoo developers Jake Greenbaum and Eduardo Ibanez of being “con artists” who sabotaged the project. He claimed to have lost hundreds of thousands of dollars due to their deceit, while they allegedly pocketed millions.
Despite Paul’s efforts to rectify the situation, CryptoZoo remains defunct. Paul clarified that he personally spent $400,000 to complete it in early 2021, but releasing it became unfeasible. He emphasized that the Zoo Token, associated with the game, was never meant as an investment vehicle, and the buy-back aims to make whole those who intended to play CryptoZoo, not compensate crypto market losses.
