Logan Paul launches CryptoZoo NFT ‘buyback’, files counterclaim as legal battle intensifies

It’s been nearly three years since YouTuber-turned-wrestler Logan Paul first announced his CryptoZoo NFT game, but the game famously never came to fruition.

It’s now been a year since we promised NFT buyers: He’ll give me a refundPaul set up an insecure website for CryptoZoo NFT refunds and issued a counterclaim against two of the co-creators of the now-defunct cryptocurrency gaming project, alleging “nefarious trading activity.”

According to Twitter In Paul’s article published on Thursday, “Traders who boughtbasic eggs” and “Base Animal” CryptoZoo NFTs can submit refund claims starting today through February 8. Paul said he will allocate $2.3 million for NFT refunds.

refund

“This buyback is a way to make whole for those who want to play CryptoZoo,” Paul said. “This buyback is not intended to compensate those who gambled and lost money in the cryptocurrency market. It is important to remember that Zoo tokens were created to support CryptoZoo games and players.”

According to Paul’s latest statement, refunds will not be offered to anyone who purchased the product. Crypto Zoo ZOO, a gaming-related Ethereum-based token, has been down to zero for a long time. Only NFT buyers will see a portion of their spent funds returned.

However, a quick look at the “CryptoZoo Victims” Discord server shows that many of those who bought into Paul’s project are unhappy with the proposed solution.

“I didn’t like it then when it was announced, and I don’t like it now,” wrote one alleged victim of Paul’s refund offer.

In particular, repurchase sites are not supported. HTTPSis an important web security feature that provides site encryption and verification, has been around since 1994 and has been widely used for at least a decade. Instead, Paul’s site links to a form that asks you to collect personal data, including your name, phone number, cryptocurrency wallet address, and physical address in order to be considered for redemption.

counterclaim

“CryptoZoo was derailed by bad actors,” Paul claimed in his post. “Bad actors who betrayed our team by stealing money and sabotaging the game internally.”

Paul claimed that an “extensive investigation” had been conducted into the CryptoZoo fiasco, which included both a blockchain investigation and a review of internal documents. That prompted him to file a countersuit on Thursday. Eduardo “Eddie” Ibanez And then there’s Jake “CryptoKing” Greenbaum, who worked on the failed project.

A trader purchased the CryptoZoo project in February 2023. filed a lawsuit Paul, Ibanez, Greenbaum and two other CryptoZoo affiliates as part of a class action lawsuit seeking compensation for the allegations. “Pull the Rug” CryptoZoo Scam.

after first claiming lack of jurisdiction last year. unable to mediate Resolution – Paul is now denying the allegations and instead attempting to reassign responsibility by blaming Ibanez and Greenbaum.

“Unbeknownst to us, nefarious trading activity took place behind our backs with the intent to defraud us all,” Paul said of the counterclaim against Ibanez and Greenbaum.

Although Paul’s lawsuit claims his role in the project was primarily marketing and publicity, he made some creative game development decisions, while Greenbaum was responsible for ZOO and Ibanez’s token economics for the game’s development.

According to Paul’s released legal response, he denies the charges, including fraud, breach of contract, breach of implied contract, unjust enrichment, negligence, misrepresentation, conspiracy to defraud, restitution and paying attorneys’ fees in the case. Other Fees and Requests.

secret sale

Paul claimed that Greenbaum “secretly” created a liquidity pool for ZOO tokens where CryptoZoo founders were able to exchange ZOO for Binance’s BNB tokens. However, when unidentified wallets were cashed out, ZOO’s market capitalization suddenly plummeted from $130 million to $26 million.

“I don’t know how that works,” Paul said of the ZOO liquidity pool in May 2023.

According to the lawsuit, Greenbaum blamed ‘bots’ for the plunge in market capitalization, and Ibanez reportedly proposed a strategy to manipulate ZOO’s future price. Paul then suggested the founders lock up their tokens, but it seems like the damage was done.

Paul also alleged that Ibanez repeatedly made false promises about game development, lied about his qualifications, made about $38,000 by touting Paul’s ZOO announcement as an on-time deal, and sold off billions more of his ZOO for a total of $1.7 million. He claimed to have earned dollars. filing.

“I can’t comment on that claim other than to say it’s completely false,” Greenbaum said. decryption.

dead game

Paul assured fans via CryptoZoo’s Twitter that the game would be completed last year, saying, “We’re very disappointed that the game didn’t deliver.”

However, in early 2023, shortly after Paul promised an initial refund, a solo indie developer “how many hours”—There is no full encryption part.

But Paul isn’t done playing and is trying to wash his hands of the whole ordeal.

“I personally spent $400,000 to develop it and complete it in early 2023, followed by additional due diligence. Unfortunately, there are so many regulatory hurdles to clear that were not originally understood and will ultimately delay this buyback. “Go further,” Paul insisted.

Kelling, Kelling’s girlfriend, Paul’s manager Jeff Levin, and Ibanez all lived together at one time, according to Zach Kelling, a former CryptoZoo developer who worked under Ibanez. Kelling previously said decryption He and the team of engineers he hired stopped working on the project because they were not paid in full for their work on the game.

decryption We have reached out to Kelling for an updated comment and have attempted to contact him. The same goes for Ibanez and Greenbaum.

This article has been updated to include comments from Greenbaum. Edited by Ryan Ozawa.