Logan Paul nonetheless hasn’t refunded followers who misplaced ‘thousands and thousands’ on CryptoZoo sport

YouTube star, boxer and wrestler Logan Paul is not any stranger to controversy.

He’s promoted alleged UFO videos and the questionable energy drink Prime — which NY Sen. Chuck Schumer is now calling on the FDA to investigate. He as soon as posted video showing a dead body in Japan’s Aokigahara “suicide forest” and drew the ire of PETA after movies confirmed him tasering two lifeless rats and performing “CPR” on a koi fish.

However some have additionally referred to as the 28-year-old — who boasts 23.6 million YouTube subscribers, 25.9 million followers on Instagram and 17.7 million followers on TikTok — a crypto rip-off artist.

Within the fall of 2021, Paul introduced CryptoZoo, an animated NFT challenge reportedly inspired by Pokémon and marketed as “a really fun game that makes you money.” For simply over $1,100, customers would be capable to “hatch” and “breed, acquire and commerce unique animal hybrids on the blockchain,” according to Coinbase. The rarer the animal, the upper the each day yield of in-game foreign money — Zoo tokens — earned.

The preliminary 10,000 NFTs instantly bought out, however the sport by no means materialized. To today, no sport really exists. 

Buyers have been, and nonetheless are, livid.

In January, Paul — who’s value a reported $245 million — unveiled a $1.5 million recovery plan to compensate displeased investors, saying he needed “to supply a rewards program for gamers who’re dissatisfied within the standing of the sport,” in addition to promising to complete the sport.

One month later, numerous traders filed a class-action lawsuit towards each CryptoZoo and Paul, alleging that Paul and members of the CryptoZoo staff stole thousands and thousands of {dollars} from traders through a “fraudulent enterprise.” Named plaintiffs within the lawsuit declined to talk to The Submit, citing concern of retaliation.

“[Paul and others behind with CryptoZoo] made the enterprise resolution to forego an costly and time-consuming course of to create a practical CryptoZoo sport or help it, and as an alternative intentionally undertook a scheme to defraud Plaintiff and different shoppers,” claimed the continued lawsuit.

The go well with might need by no means materialized with out the work of Stephen “Coffeezilla” Findeisen, a person who investigates on-line scams for a residing.

For properly over a yr, Findeisen, a self-styled web detective, has been trying into the CryptoZoo enterprise. In December of 2022, he revealed a three-part series on YouTube, alleging the various methods by which the NFT challenge had failed its traders and interviewing dozens of people who claimed to have misplaced cash.

One of many worst affected people was an Australian, who misplaced near $335,000 (USD). He requested that his identify not be used out of concern of retaliation.

Findeisen’s movies went viral. In March, he appeared on the “Joe Rogan Expertise,” one of many greatest podcasts on the planet, to debate his findings.

Thus far, Findeisen advised The Submit, not one investor has been compensated. (Paul said in his January video that he had apologized to Findeisen, after accusing the investigative reporter of utilizing his identify for “views and cash” and publishing “a defamatory hit piece,” in response to Findeisen’s YouTube collection. Paul additionally stated that suing Findeisen “wouldn’t assist CryptoZoo holders.”)

He estimates that “tens of 1000’s” of victims exist. In keeping with Findeisen, who has shut to three million subscribers on YouTube, Paul owes greater than $3.6 million to traders.

In the meantime, Zach Kelling, Crypto Zoo’s chief engineer, advised The Submit that Paul owes him “a minimum of $1 million” for his work.

“Logan doxxed me in January in a really public assault video on YouTube, blaming me for his challenge failing after he refused to pay my staff and black-listing all of our tokens,” Kelling stated. “This result in loss of life threats and put my household’s life in jeopardy …

“Though [Paul] has since taken down the assault video, my unlucky relationship to the challenge as a developer has precipitated large points for me in my life and profession,” added Kelling, a Kansas Metropolis native. “I deeply remorse ever attempting to assist him or his staff.”

Findeisen invited The Submit right into a Discord group consisting solely of CryptoZoo victims — all of whom requested that their names not be revealed out of concern of retaliation.

One member, who goes by the username “cptdandan,” claimed that he misplaced $110,000. One other sufferer stated that “a refund just isn’t sufficient. But when that’s probably the most that can occur. then it’s a minimum of one thing. My want for Logan Paul could be for some jail time however that can by no means occur.”

On the very least, he concluded, “some kind of authorities motion is required.” (Thus far, no authorities regulators have accused Paul of any prison conduct in reference to CryptoZoo.)

A 3rd disgruntled commenter referred to as Paul’s habits “deplorable,” including: The actual fact he simply tries to cover and hope it goes away is the worst. He made a mistake — he must personal it and do the precise factor.”

One other investor, who claims to have misplaced $15,000, “would really like Paul to take a great exhausting take a look at himself” and ask “if he actually thinks his household could be pleased with a serial scammer who can’t man up sufficient to do the precise factor.”

Paul didn’t reply to requests for remark.

Findeisen additionally has a message for Paul: “In the event you make massive guarantees, it’s a must to ship. Scamming your followers just isn’t acceptable.

“My private opinion is that CryptoZoo was a fraud, however I’ll depart it to regulation enforcement to determine if there ought to be additional steps taken,” the 37-year-old stated. “As it’s, Logan Paul is being sued by his personal former followers, and I feel that speaks volumes concerning the injury he’s carried out to others and to his personal repute.”

Findeisen guarantees that he “received’t cease attempting to assist the victims get their a refund. Logan Paul promised he’d refund them, it’s time to pay up.”