After investors began to suspect a rugpull, Paul announced the project was dead and promised to reimburse NFT holders around a year later.

Unexpectedly, contentious YouTuber Logan Paul has declared his intention to reimburse investors for their NFT purchases made for his doomed CryptoZoo venture. The project, which promised a virtual world full of crypto animals, is the subject of legal action and a cloud of suspicion, which has led to the move.

Exposes the CryptoZoo Scandal on CoffeeZilla

YouTuber CoffeeZilla published a three-part series on Logan Paul’s CryptoZoo project in January 2023.

CoffeeZilla’s exposé exposed the dubious aspects of CryptoZoo, exposing that users had to buy egg NFTs in order to play the game. It was said that users would be able to play games and engage in breeding with these virtual eggs hatching into virtual animals. But when Logan Paul stayed silent regarding the project’s progress and its social media pages became silent, concerns began to grow.

Following CoffeeZilla’s videos on the topic, Paul declared he was going to sue the YouTuber. Buyers of the associated cryptocurrency $ZOO as well as buyers of CryptoZoo NFTs filed a class-action lawsuit in response to this announcement.

After Logan Paul declared he would sue CoffeeZilla in retaliation for the exposé, the controversy grew more intense. Paul became the target of a class-action lawsuit alleging misleading activities. Along with Paul, other celebrities who had supported the CryptoZoo project were also named in the complaint, which claimed they were manipulating the cryptocurrency market for personal gain.

Announced refunds in the midst of court cases

There haven’t been many updates on any of the court cases until today, when Logan Paul declared he would reimburse NFT buyers as long as they gave up their lawsuit rights.

Logan Paul recently announced his intention to reimburse holders of CryptoZoo NFTs, allocating $2.3 million for this purpose. But there was a big caveat to this refund: consumers had to give up their legal right to sue Paul. The action begs concerns about the YouTuber’s intentions and the degree of his accountability for the project’s failure.

Refunds to NFT Holders; $ZOO Holders Excluded

Only holders who had not utilized their NFTs to generate hybrid animals were eligible for a return of 0.1 ETH/NFT, the initial price at which these NFTs were sold.

Although the return appears to be a step in the right direction toward resolving NFT holders’ complaints, there is a significant exclusion. Refunds are not available to those who actively engaged in the game by trying to produce hybrid creatures. Furthermore, there will be no payment sent to the owners of the project’s cryptocurrency, the $ZOO token.

Project Failure and Lawsuits Against Members of the Team

Regarding the CryptoZoo game itself, Paul has officially said that it is no longer in development and will never be distributed in its entirety, as CoffeeZilla first proposed a year ago.

Logan Paul said that “regulatory hurdles” were the cause of the collapse of the CryptoZoo game. Still, many people doubt the veracity of this story, believing that other variables played a role in the project’s collapse. Paul took a startling turn and accused Ibanez and Greenbaum, two members of his team, of trying to pull a rugpull. A lawsuit with multiple claims has been filed against these team members.

The cryptocurrency and NFT communities are waiting for more information in the wake of this turbulent story, wondering if Logan Paul’s refund gesture is a sincere attempt to make up for CryptoZoo’s wrongs or if it is just a calculated move in the midst of the current legal fights.