With “CryptoZoo”, the famous YouTuber Logan Paul created a blockchain-based game and promised his players a good investment, in addition to fun in the game. But the scheme backfired, and now Paul has to deal with a class-action lawsuit in the USA.
YouTuber Logan Paul is known for his affinity to the crypto market, for instance, he once founded a marketplace where you can purchase NFT shares of valuable collectibles.
Another project is the game “CryptoZoo”. However, the YouTuber “Coffeezilla” exposed the project as a scam. Paul saw himself as a victim. He trusted the wrong people and got scammed himself.
But Paul stands at the center of the scandal as the founder and face of the project, and now legal consequences are looming. A player has filed a class-action lawsuit in the USA.
More background on NFTs and blockchain can be found here:
Logan Paul continues to face trouble with CryptoZoo – Now facing lawsuit
In CryptoZoo, players are supposed to collect, hatch, and develop hybrids from animals. The whole system revolves around the in-game currency “ZOO”, a cryptocurrency. Players can earn the currency in-game and convert it back to cash through cryptocurrency trading platforms.
Especially for early adopters, participation should be worthwhile. However, development has been slow, and YouTuber Coffeezilla made the internal problems of CryptoZoo public with a three-part video series (youtube.com).
Since then, the project is considered a scam by many users, even though Logan Paul insists that work is still being done and he himself has not made any money from it (via twitter.com). He even offered to personally pay out players who want to exit the game.
But apparently, some players do not find this offer sufficient, and once again it is Coffeezilla who uncovers the next blow against the project – a lawsuit in a court in Austin (Texas / USA):
The US site Kotaku has the complaint (via kotaku.com). According to the complaint, it comes from a police officer in Texas who invested around 3,000 US dollars in CryptoZoo. He demands 75,000 US dollars, among other things, due to the facts of “fraud”, “negligence”, or “conspiracy to commit fraud”.
However, not only Logan Paul is accused, but also former employees who are said to be responsible for the chaos at CryptoZoo.
No statement from Logan Paul regarding the lawsuit can currently be found.
Whether the lawsuit has a chance of success is hard to assess. According to previous statements from Logan Paul, not everything was going right in the company, and he himself was a victim of fraudsters.
Since it is a US class action lawsuit, other affected parties may also participate in the lawsuit. Either way – the CryptoZoo project has not gone optimally for Paul.
Such projects damage the reputation of NFTs and blockchain, especially in the gaming sector. However, the technology actually offers a new level of security on the internet: NFTs are more than micro-transactions
