Logan Paul Sued Over Allegations Cryptozoo Nft Game Was A ‘rug Pull’

He also claimed Findeisen had illegally recorded a phone call with his manager, Jeff Levin. "Your addiction to clicks has clouded your judgment," he railed in the now-deleted video. On launch day, $2.5 million worth of eggs were sold at around $300 eachbefore anyone had even seen any images of the animal NFTs. When the NFTs were eventually released, Findeisen said, some observers remarked that they appeared not to be handmade art but instead "Adobe stock photos mashed together." After two weeks of radio silence — plenty of time for him to consult his lawyers — Paul has released a response video, lashing out at Findeisen and accusing him of spreading gossip without sufficient research.

The plaintiff is a Texas police officer who says he lost about $3,000 from investing in the game. Kherkher says that CryptoZoo investors like Dan have been for months compiling evidence that he says supports claims of fraud, negligence and express breach of contract. Several development teams had been hired and then dropped from the project. And in December, https://www.uniquenewsonline.com/primexbt-scam-or-safe/ a YouTube journalist named Stephen Findeisen, who goes by CoffeeZilla, published a three-part series investigating CryptoZoo. He reported that the founders had lied to investors and each other, and that there was bitter infighting. He also told the stories of many investors who claimed they had lost thousands or hundreds of thousands in the project.

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The breeding part is where the "to-earn" part of play-to-earn comes from. The rag-tag team of partners Logan hired include Joey the Crypto King and Eddie Ibanez, who have since been outed as serial scammers. Eddie Ibanez famously conned billionaires in the past by convincing them he was an orphan, ex-CIA operative, and even claimed he won the Super Bowl in 2018 . The project’s key concept, passive income, never worked from the start and wasn’t even stated in the agreement where it indicated you were truly yielding with Zoo. People were basically investing money in a system that provided no returns.

After selling millions of dollars worth of NFTs and tokens, Paul stopped talking about CryptoZoo and seemingly abandoned the project until CoffeeZilla revealed all that. Although Paul somehow believes that CryptoZoo has a future, Zach Kelling, who still has the original code, tweeted on January 4 that he’ll release CryptoZoo exactly as intended if Paul pays his bill. If Paul really wants to hold on to the CryptoZoo project, he needs to reimburse money to all the victims, and only then follow the development timeline for the project. Of course, scams aren’t new in the crypto market, but instead of trying to save his reputation, Paul should be saving his accountability as entrepreneur.

In Response To Coffeezilla’s Video Series, Paul Denies Scamming His Audience And Said He Has Only Lost Money On His Nft Game

In addition, Paul has been promoting another unsuccessful crypto project Dink Doink, which he advocated in June 2021. The number of investors in CryptoZoo is undisclosed; however, the project’s Discord server has over 500 users. Promising collectors might hook them into randomly selected animal pictures.

Last June, a frequent user of Marketplace with the username youssef complained about the lack of activity and Paul’s absence in the project’s Discord. “We are literally like 10 active users tops , allot of ppl aren’t interested anymore https://marketbusinessnews.com/what-is-the-primexbt-scam-or-not/330899/ so something needs to be done, not only social media marketing, I mean real logan paul type marketing,” they wrote. Although the conflict may seem resolved, it is far from it, and there are pretty serious allegations Paul can’t deny.

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Paul promised big things for the company and hyped it on his social media channels. In August 2021, YouTuber/boxer/forest lover Logan Paul began promoting a game, CryptoZoo, on his podcast Impaulsive. CryptoZoo is a blockchain-based game where players could purchase in-game cryptocurrency to then purchase an egg that would hatch into an animal that users could crossbreed with other in-game animals. primexbt .com The rarer the breed, the more in-game crypto a player could receive, in turn buying more eggs or cashing out for fiat currency. In August 2021, Logan Paul began promoting a game, CryptoZoo, on his podcast Impaulsive. CryptoZoo is a blockchain-based game where players can purchase in-game cryptocurrency to buy eggs that would hatch into animals that users could crossbreed with other in-game animals.

But CryptoZoo was not the first time Paul heavily promoted a crypto project before apparently abandoning it. In June 2021, just a couple months before CryptoZoo’s launch, Paul had told his followers to invest in a new meme coin called Dink Doink. On Feb. 2, Kherkher, the lawyer from Texas, filed a lawsuit that seeks class action certification against Paul and the other CryptoZoo founders.

Logan Paul Sued In A Class Action Lawsuit For His Involvement In $7 Million Cryptozoo Scam

Logan Paul is an influencer, podcaster, and professional wrestler who has — once again — found himself at the center of controversy. A three-part YouTube series by investigative journalist Stephen Findeisen, who’s known as Coffeezilla on YouTube, delved into Paul’s recent CryptoZoo project, branding the endeavor a scam. As if matters couldn’t get weirder, less than a month later, a pig named Pearl previously owned by Paul was found abandoned by an animal rescue, which has since taken Pearl in. The independent reporter Coffeezilla released a three-part video series at the end of December, chronicling his research into what went wrong with CryptoZoo. As it turns out, Paul had employed multiple con men to work on the project. Given Logan Paul’s dubious history on YouTube, it probably doesn’t come as a surprise that his CryptoZoo NFT project has allegedly turned out to be a scam.

After Logan Paul’s CryptoZoo game failed to let players withdraw money, Youtuber Coffeezilla investigated and accused him of scamming everyone involved. CryptoZoo still needs to pay the developers about $1 million and 5% of the tokens. I am pleased to give the GitHub repos, which demonstrates that it was certainly a massive effort by almost 30 team members. “In his statement, Kelling denied Paul’s initial claim that Kelling only employed three engineers. Kelling called Paul’s response video “defamatory” and suggested it was a personal attack in a LinkedIn post.