In the year 2021, Logan Paul launched a Pokémon-inspired NFT game called CryptoZoo. However, the game turned out to be a failure and was even accused of being fraudulent. But now, Paul is offering something to make up for it – refunds. However, there’s a catch to getting a refund from CryptoZoo.
Announced in a post on X (formerly known as Twitter) on Thursday, Paul revealed that he will personally spend more than $2.3 million to buy back NFTs purchased through CryptoZoo. But, in order to receive a refund, claims must be submitted online by February 8th.
“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,” Paul said in his post. “Like you, I was highly disappointed that the game was not delivered.”
– Logan Paul (@LoganPaul) January 27, 2022
According to Paul, he did not make any profit from the project and actually lost a significant amount of money trying to make it work. He also shared the disappointment of players when the game was not delivered as promised.
But there are terms and conditions to be eligible for a refund. NFTs known as “Base Eggs” and “Base Animals” are the only ones eligible for the buy back program. Players were supposed to be able to breed these animals and create “hybrid” animals which would also be NFTs. However, these hybrid animals are not included in the buy back program.
The terms and conditions also state that any NFTs submitted by Paul that are deemed “ineligible” will not be returned. In addition to this, claimants must also agree to waive any potential claims against Paul and promise not to take legal action related to CryptoZoo.
The influencer is currently facing a class action lawsuit for allegedly making millions by promoting the game, despite it not actually existing. But Paul is not backing down and has also filed a cross-claim, stating that he has “filed a lawsuit in federal court in Texas to hold these bad actors accountable.”
“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,” Paul continued in his X post. “Nefarious trading activity taken behind our backs, without our knowledge, and with the intention of defrauding us all.”
– Logan Paul (@LoganPaul) January 27, 2022
According to Los Angeles-based lawyer Rob Freund, who represents brands and creators, the buy back program may be Paul’s attempt at minimizing damages. Class action lawsuits can be damaging for defendants as they may have to pay for what the plaintiff and class members initially lost, as well as punitive damages and attorney fees. Freund believes that by offering refunds in exchange for waiving claims against him, Paul may be able to individually settle with class members and minimize potential damages.
Paul initially described CryptoZoo as a “really fun game that makes you money” when he announced it on his podcast “Impaulsive” in August of 2021. The game used ethereum and each NFT was an egg that would hatch into an animal with different levels of rarity. These animals could then be bred to create hybrids and players could either buy more eggs or cash out each time an animal hatched. Paul also promised that the game would have interactive minigames and eventually enter the metaverse.
“My 3-step plan for CryptoZoo, including a $1.3M rewards program for disappointed players. Thank you, @coffeebreak_YT pic.twitter.com/xFX017UHoc”
– Logan Paul (@LoganPaul) January 13, 2023
But the project quickly fell apart. Independent reporter Coffeezilla documented the unraveling of the project in a three-part investigation, where it was revealed that developers quit due to nonpayment, Paul and his associates planned to manipulate the market, and players were unable to breed their animals or cash out. In response, Paul accused one of the developers of scamming him and the team, but later took accountability and promised to pay back investors and finish the game.
In the class action lawsuit filed in the Western District of Texas last year, it was alleged that Paul and his associates promoted the game to consumers who were unfamiliar with digital currency products, and manipulated the market for Zoo Tokens to their advantage.
In his answer and cross-claim filed on Thursday, Paul accused other CryptoZoo associates of being “con artists” who “sabotaged” the project. He also claimed that while he lost hundreds of thousands of dollars due to their deceit, these associates pocketed millions. However, CryptoZoo is now officially dead. Paul stated that after spending $400,000 to complete the game early last year, it was not feasible to release it. He also reminded followers that the Zoo Token was never meant as an investment and the buy back program is not meant to compensate those who lost money in the crypto market.
“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. This buy-back is a way for me to make whole those who intended to play CryptoZoo.”
– Logan Paul (@LoganPaul) January 27, 2022
With this buy back program, Logan Paul may be hoping to minimize potential damages caused by the failed project and move towards a more favorable settlement. Only time will tell the outcome of the class action lawsuit and the aftermath of CryptoZoo.
