Logan Paul hit with lawsuit over CryptoZoo
Logan Paul, influencer and wrestler, is being accused of fraud, breach of contract, unjust enrichment, violation of Texas’ Deceptive Trade Practices Act (DTPA), and negligence over a token sale for a Web3 game that did not come to fruition in a class action lawsuit filed on February 2, 2023, in Austin, Texas.
The Web3 game in question is CryptoZoo, Paul’s pet project that has been called a scam by YouTuber Stephen "Coffeezilla" Findeisen. The game was envisioned to allow players to buy into a new cryptocoin, with which they could then purchase and sell eggs, which would hatch into different animal-based NFTs. Those, in turn, were supposed to be able to breed new NFTs.
Coffeezilla had accused Logan Paul of shady practices in this context, criticizing him for not seeing the project through to completion and marketing it to children. He also accuses him and his team of stealthily launching the game without knowledge of the public, enabling them to gobble up as much of the currency as they wanted to inflate its value, coordinating the buying and selling with each other to keep the value high.
Logan Paul and his management refuted those claims, but still promised to offer compensation. That was not enough, as the class action lawsuit shows. It targets Paul as well as his manager Jeffrey Levin and members of the CryptoZoo team such as Eduardo Ibanez and the self-anointed “Crypto King”, Jake Greenbaum.
A lawyer involved in filing the lawsuit stated on Twitter: "We have officially filed a class action lawsuit in the Western District of Texas against Logan Paul et al. for the CryptoZoo fiasco. (This is in addition to the numerous cases heading to arbitration on the matter.)"
Paul and his management have not publicly commented on the matter at the time of writing.
