Logan Paul Refutes Claims of CryptoZoo Project Being a Scam
Popular YouTuber Logan Paul has addressed allegations surrounding his controversial CryptoZoo non-fungible token (NFT) in a documentary titled “5 Months with Logan Paul.” In the film, Paul defends the NFT project, stating that it was not a scam. The documentary features journalist Graham Besinger, who delves into the downfall of the project and the subsequent backlash and accusations.
Besinger claims in the documentary that Paul’s CryptoZoo NFT was a chaotic venture that resulted in significant financial losses for investors, leading to a wave of allegations and threats against the YouTuber. Paul acknowledges that there is some truth to these allegations but maintains that the project was not a scam.
“I can’t deny that there is truth to what you’re saying,” Paul admits. “But what you described isn’t a scam. I took on a project that I was ill-equipped to handle at the time.”
Paul also reveals that he did not profit from the project but instead suffered a loss of half a million dollars. He further discloses that the failure of CryptoZoo pushed him to the brink of suicidal thoughts. “I experienced suicidal thoughts for the first time in my life,” he confesses. “I was spiraling, Graham. Spiraling. I cried, sobbed…I felt weak, which is not something I’m accustomed to. I’m supposed to be a leader.”
The CryptoZoo NFT project was initially announced by Logan Paul on his YouTube podcast in August 2021. The project aimed to create a playful game inspired by Pokémon, where collectors could purchase eggs and breed them to obtain rare NFTs. Despite generating significant excitement, the project failed to gain traction. After the initial 10,000 collectibles were sold at 0.1 ETH each, the development team encountered numerous delays, making it challenging to bring the game to fruition.
Following the collapse of CryptoZoo, popular YouTube journalist Coffeezilla released a three-part docuseries exposing the issues surrounding the game. The series highlighted the struggles faced by investors who suffered financial losses. Coffeezilla’s investigation revealed that Logan Paul had enlisted the help of several fraudsters, including a developer known as “Z,” who held the CryptoZoo source code hostage for a ransom of $1 million.
As a result of these allegations, a class-action lawsuit was filed against Logan Paul in February 2023, claiming that CryptoZoo was a fraudulent venture. However, in January 2024, Paul announced a $2.3 million buyback program, vowing to repurchase all NFTs at their original prices. The tokens have seen a significant decline, down 99% from their all-time high in August 2021.
While the CryptoZoo NFT controversy has garnered attention, crypto scams continue to rise alongside the growing interest in digital assets among traders and investors. According to the BBB Scam Tracker’s annual data, over 67,000 scams were reported in 2023, resulting in substantial financial losses. The Chainalysis 2024 crypto crime trends report also revealed that illicit addresses received $39.6 billion and $24.2 billion worth of cryptocurrency in 2022 and 2023, respectively.
Additionally, a report by Scam Sniffer unveiled that hackers exploited a phishing crypto scam, draining $300 million from 320,000 traders and investors in 2023. The web3 anti-scam solution company also reported that $46.86 million worth of crypto was stolen by scams in February 2024.
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