Youtuber-turned professional wrestler Logan Paul has shared his perspective on the controversial CryptoZoo nonfungible token (NFT) gaming project
In the documentary "5 Months with Logan Paul," Graham Bensinger discussed numerous accusations directed at the internet personality, with the journalist emphasising how Paul's involvement "led people to lose money."
The controversy started with a series of videos produced by a YouTuber named Coffeezilla, also known as Stephen Findeisen. In these videos, Findeisen documents the ascent and eventual collapse of Logan Paul's once-prominent NFT initiative, CryptoZoo, presenting evidence suggesting potential misconduct by Paul and his team towards investors.
Following a brief dispute between Paul and Findeisen, the embattled celebrity eventually opted to accept responsibility, committing to reimburse 1,000 ETH (equivalent to approximately $1.3 million at the time) to those who suffered financial losses due to the project.
However, this apology marked just the beginning. On February 2, 2023, a legal action was initiated against CryptoZoo, Logan Paul, and others, alleging various offenses including fraud, breach of contract, and unjust enrichment.
“Everything you just said has an element of truth to it. Here’s the problem. What you just described isn’t a scam. I took on a project that I was simply incapable of handling at the time.” Paul said in the documentary.
Paul contended that he, too, suffered financial losses in the venture, suggesting that he was also a casualty. “I didn’t make any fucking money, bro. I’ve lost half a million dollars on this. Where is the scam?”
Additionally, Paul revealed in the documentary that he grappled with suicidal ideation due to the CryptoZoo project. “For the first time in my life, I was having suicidal thoughts. I was just spiraling,” he said.
In addition to his efforts to refute allegations, Paul expressed his intention in the documentary to "take care" of those who portrayed CryptoZoo as a scam orchestrated by him. He remarked:
“The CryptoZoo saga is far from over because it was a one-sided story. He [Coffeezilla] told it how he wanted to tell it and told it a certain way that made me look like the captain of the ship.”
This wasn't the first time Paul vowed to take action against individuals who reported on CryptoZoo. In January 2023, Paul threatened legal action against YouTube journalist Stephen Findeisen — also known as Coffeezilla — following Findeisen's coverage of the project.
However, Paul swiftly retracted his threats and extended an apology to Findeisen a few days later.
During the same month, Paul introduced a $1.5 million recovery initiative for those impacted by the failed project. Nevertheless, it took a year and a class-action lawsuit before the redemption plan was executed.
In February 2023, dissatisfied investors initiated a class-action lawsuit against CryptoZoo and Paul, alleging that the enterprise executed a rug pull. The plaintiffs asserted that Paul and the project misappropriated millions of dollars through the venture.
On Jan. 5, Paul announced the commencement of the buyback program. However, it came with a catch: Participants could only receive a refund if they waived all existing and future claims against the YouTuber.
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