In a surprising turn of events this year, popular social media influencer Logan Paul found himself in the middle of a legal dispute involving a cryptocurrency business called CryptoZoo LLC. The issue took shape when a lawsuit was filed against Paul and 5 others that claimed that CryptoZoo was nothing but a scam.
Logan Paul, widely recognized for his online presence, enthusiastically endorsed CryptoZoo in one of his podcast episodes back in August 2021. At that time, he had a massive audience of around 4 million subscribers on YouTube. He pitched it as a fun game with the potential to make money. In a later instance, he even compared it to being more universal than the famous Pokémon franchise, as he spoke about it in Forbes.
Although, the narrative took a different direction when a YouTuber named CoffeeZilla released a three-part expose about CryptoZoo. He shared stories of people who claimed to suffer because of CryptoZoo. His video further pointed out three main concerns.
First was that the people involved in CryptoZoo were encouraged to buy in-game money which ended up giving no returns. Second was that the makers were gaining profit out of it. Third was, how CryptoZoo promised to improve the game but it didn’t. On this, Paul responded by posting two videos where he criticized CoffeeZilla and threatened legal action.
However, due to public reaction, he later changed his tune and apologized publicly, vowing to fix things. Although the exact amount of money Logan Paul made from this situation isn’t known, it’s clear that he gained financially from his involvement in CryptoZoo. As the legal process unfolds, it’s an ongoing story that highlights the potential risks associated with cryptocurrency and the influence of online celebrities.
Logan Paul hasn’t paid to CryptoZoo victims yet
Despite promising to take action, WWE star Logan Paul has yet to provide compensation to the victims of the CryptoZoo debacle. Back on January 13th, Paul made a commitment to not only give up his ownership in the game but also refund a minimum of $1.3 million to those affected, all while ensuring the game’s completion. He expressed his frustration with the internal handling of the matter, calling it an understatement.
In an attempt to rectify the situation, Paul discussed a three-step plan. He pledged to sever financial ties with the company, thereby eliminating any personal gain from it. This, he claimed, would boost the value of the tokens held by participants in the game. Additionally, Paul vowed to build a more user-friendly ‘rewards program’ for easier cash-outs. Lastly, he vowed to push CryptoZoo’s development to the point where it met its initial promises.
However, time has passed, and despite the public commitments, the victims are still awaiting their compensation. The absence of progress on this front has left those affected in a state of anticipation and disappointment.
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