CryptoZoo NFT Buyers to Receive Refunds

In a recent turn of events, Logan Paul, a prominent online personality, has pledged to refund purchasers of his CryptoZoo NFTs. This decision emerges amidst legal disputes and allegations of project mismanagement.

The Birth and Fall of CryptoZoo

Launched with significant fanfare, CryptoZoo enticed customers to buy egg NFTs, essential for participating in its eponymous game. These digital tokens promised an engaging experience, allowing players to hatch, breed, and interact with virtual animals. However, the project soon faced scrutiny.

Allegations and Legal Repercussions

Amidst growing suspicions of a 'rugpull', a term denoting a deceptive pullout by project creators, the social media channels linked to CryptoZoo went silent. Logan Paul found himself embroiled in controversy, subsequently vowing to take legal action against YouTuber CoffeeZilla, who had critiqued the project. In a twist, purchasers of CryptoZoo's NFTs and the associated cryptocurrency, $ZOO, filed a class-action lawsuit against Paul and other celebrities involved in the project's promotion.

The Core of the Class-Action Lawsuit

The lawsuit alleges deceptive practices by the defendants, accusing them of exploiting Paul's online influence to market CryptoZoo to an audience unfamiliar with digital currencies. The accusation extends to market manipulation and non-delivery of the promised game, demanding the disgorgement of any profits made from these alleged schemes.

Logan Paul's Response and Refund Offer

On January 4, 2023, Paul announced his intention to set aside $2.3 million for refunds, offering 0.1 ETH per NFT, the initial sale price. However, this refund comes with conditions: it excludes holders who engaged with the game's features and those holding the $ZOO token. Paul maintains that he did not profit from the project, blaming team members Ibanez and Greenbaum for attempting a 'rugpull' and initiating a cross-claim lawsuit against them.

The End of CryptoZoo

Confirming suspicions raised by CoffeeZilla, Paul announced the official discontinuation of the CryptoZoo game, citing regulatory challenges and other unspecified factors.

While the offer of refunds marks a step towards resolution, it leaves numerous stakeholders dissatisfied and highlights the volatile nature of NFT ventures.