Logan Paul, the popular YouTuber, is offering refunds for CryptoZoo, the failed Pokémon-inspired NFT game that he launched in 2021. However, there’s a condition attached to these refunds – claimants must agree not to sue him.
Key Takeaway
Logan Paul is offering refunds for the failed CryptoZoo NFT game, but claimants must agree not to sue him in order to receive the refund. The buy-back program is seen as a strategy to minimize potential damages in the ongoing class action lawsuit.
Refunds for CryptoZoo NFTs
In a recent post on X (formerly Twitter), Paul announced that he is personally committing over $2.3 million to buy back NFTs purchased through CryptoZoo. The deadline for submitting claims is February 8. Each claimant will receive 0.1 ETH per eligible NFT, which includes “Base Eggs” and “Base Animals.” It’s important to note that hybrid animals are not eligible for the buy-back program.
However, there’s a catch. Claimants must agree to waive any actual or anticipated claims against Paul, essentially promising not to take legal action against him in relation to CryptoZoo. Additionally, Paul has the discretion to deem submitted NFTs as ineligible for the buy-back program.
Legal Action and Lawsuit
Paul is currently facing a class action lawsuit for allegedly making millions of dollars by promoting a game that ultimately didn’t materialize. In response, he has filed a lawsuit in federal court in Texas to hold the individuals involved in the project accountable.
Rob Freund, a Los Angeles-based lawyer, believes that the buy-back program could be Paul’s attempt at minimizing damages. By refunding NFTs in exchange for waiving claims against him, Paul can individually settle with class members, effectively reducing potential damages.
The CryptoZoo Project
CryptoZoo was marketed as a collecting game using Ethereum, where each NFT represented an egg that would hatch into an animal of varying rarity. Players were promised the ability to breed these animals to produce hybrid NFTs and earn $ZOO tokens. However, the project unraveled as developers quit due to nonpayment, and allegations of market manipulation surfaced.
Allegations and Response
Paul has accused other CryptoZoo developers of sabotaging the project, claiming that they pocketed millions while he lost hundreds of thousands of dollars due to their deceit. He also emphasized that the Zoo Token was never intended as an investment vehicle, and the buy-back is a way to make whole those who intended to play CryptoZoo.
