Logan Paul is offering refunds for CryptoZoo, a failed and allegedly fraudulent Pokémon-inspired NFT game he launched in 2021. Any questions? If you get a refund, you can’t sue him.
in a X (former Twitter) post On Thursday, Paul announced his “personal commitment” of more than $2.3 million to buy back NFTs purchased through CryptoZoo. Claims can be submitted online until February 8.
“I never made a penny from this scheme, period. In fact, quite the opposite, as I spent hundreds of thousands of dollars trying to make this happen,” Paul said in his post. “Like you, I’m extremely disappointed that the game failed to deliver.”
Each eligible NFT claimant will receive 0.1 ETH – known as the “base egg” and “base animal”. Players should be able to “breed” animals that are “hatched” from the base NFT they purchased, which will create “hybrid” animals that are also NFTs. Hybrid animals are not eligible for the buyback program.
The form’s terms and conditions also state that any NFT submitted that Paul “determines in his sole discretion to be ineligible” will not be returned. In order to be eligible for a refund, the claimant must also agree to waive any “actual or anticipated claims against Paul” – meaning a promise not to pursue legal action against him over CryptoZoo.
The influencer is facing a class-action lawsuit for allegedly making millions of dollars in cryptocurrency by promoting a game that ultimately does not exist, and he has also filed cross-claims.in a X postshe said he “filed a lawsuit in Texas federal court to hold these bad actors accountable.”
“This lawsuit is the result of a thorough investigation, which included reviewing the entire conversation and tracing illegal trading activity related to the project,” Paul continued in his X post. “Evil trade operations are going on behind our backs without our knowledge and are designed to defraud us all.”
Rob Freund, a Los Angeles attorney who represents brands and creators, told TechCrunch that the buyback program may be Paul’s attempt to minimize losses. Class actions can be “devastating” for defendants because damages can include original losses for plaintiffs and class members in addition to punitive damages and attorneys’ fees. Freund suggested that by returning the NFT in exchange for waiving claims against him, Paul could individually settle with class members, effectively minimizing potential losses.
“Paul may be betting (or at least hoping) that enough people who would otherwise be potential class members will take him up on this offer and, by doing so, significantly reduce his potential exposure to the pending case,” Freund said. risk.” “This will allow him to reach a more favorable solution.”
When Paul announced the project on the “Impaulsive” podcast in August 2021, he described the NFT project as a “very fun game that can make money.” CryptoZoo is a collectible game using Ethereum – each NFT is an egg that should hatch into an animal and be designated as one of five rarity levels. These animals can be bred into hybrids, which vary in rarity. Each time an egg is hatched, a certain number of $ZOO tokens are generated, which is determined by the rarity of the animal. Each time an animal hatches, players should be able to purchase more eggs or cash out.
Paul also promised that CryptoZoo will include interactive mini-games and that the project will eventually “enter a virtual universe.”
A three-part investigation by independent YouTube journalist Coffeezilla documents how the project unraveled; the game was never completed because the developer backed out due to non-payment, and Paul and his colleagues allegedly planned to engage in market manipulation that players could not Hatch hatched eggs or cash out.
Coffeezilla reported that two anonymous accounts received payments from the project – one received $364,000 (92.7697 ETH) and the other received $1 million (260.000 ETH). As of the time of Coffeezilla’s report, CryptoZoo held approximately $79,875,629 (or 1,214,225,001.8 $ZOO) for “wildlife charities and CryptoZoo development.”
In a now-deleted response video, Paul accused another CryptoZoo developer of defrauding him and the rest of the team, but later told fans on Discord that he would “take responsibility.”he and then made a plan Return investors and complete the game.
A class action lawsuit filed last year in the Western District of Texas alleges that Paul and other CryptoZoo associates promoted the project to “consumers unfamiliar with digital currency products” and that they “manipulated the digital currency market for Zoo tokens to further their own agenda.” Advantage”.
In answers and cross-claims filed on Thursday, Paul claimed that CryptoZoo staffers Jake Greenbaum and Eduardo Ibanez were “liars” who “scuttled” the scheme. Paul also claims that while he “lost hundreds of thousands of dollars due to duplicity and deceit by people he trusted,” Greenbaum and Ibanez pocketed “millions.”
However, CryptoZoo is dead. Paul said it was not feasible to release it after spending $400,000 “personally” to complete it early last year. He also reminded fans that Zoo Tokens were created to support the game and were never intended as an “investment vehicle,” so the buyback was not intended to “compensate those who gambled and lost on the crypto market.”
“Unfortunately, there are so many regulatory hurdles that need to be cleared that I didn’t understand initially that will ultimately delay this buyback even further,” he said. “This buyback is my way of making it complete for those who want to play CryptoZoo.”
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