Logan Paul, a prominent influencer known for his polarising persona, has faced intense scrutiny and legal challenges regarding his NFT-based project, CryptoZoo. Marketed as a blockchain game allowing players to trade and “breed” virtual animals for profit, the project failed to deliver, sparking accusations of fraud and leading to significant financial losses for investors.
THE PROJECT’S LAUNCH AND FALLOUT
Paul introduced CryptoZoo in 2021 as a “fun game that makes you money” where users could buy, breed, and trade NFTs of Pokémon-inspired hybrid animals. Leveraging Paul’s massive following, the project generated considerable buzz, attracting investments from fans and crypto enthusiasts.
However, the game was never completed, and its associated cryptocurrency, ZOO, plummeted in value. This left many buyers, including those who purchased NFTs of “base animals” and “eggs,” at a loss. Victims claimed total losses exceeding $4.1 million, with some individuals losing six-figure sums.
REFUNDS AND LEGAL ACTIONS
In response to public backlash, Paul announced in January 2023 a refund program of $1.3 million for NFT holders, a move many saw as an attempt to placate critics rather than address the underlying issues. He later expanded this to $2.3 million, but the refund program only partially compensated users who purchased specific NFTs and required them to waive their right to sue. This buyback covered a fraction of the total losses and excluded ZOO token holders entirely, prompting further dissatisfaction.
Amidst the fallout, Paul filed a countersuit against his development team, alleging they were responsible for the project’s failure. The blame game, however, did little to restore investor confidence.
THE COFFEEZILLA FACTOR
One of the loudest critics of CryptoZoo was YouTuber Coffeezilla, known for exposing crypto scams. His investigative series detailed how CryptoZoo misled investors and failed to deliver on promises. Paul initially dismissed the allegations but later issued an apology, vowing to make amends—a pledge many saw as too little, too late.
In 2024, Paul retaliated against Coffeezilla with a defamation lawsuit, claiming the exposés were damaging and false. Critics viewed this as an attempt to suppress further investigations, particularly into Paul’s other ventures, such as Liquid Marketplace, which has also faced accusations of fraud.