Logan Paul has started offering refunds for people who bought his CryptoZoo NFTs – but the catch is you can’t sue him if you get some money back.
The internet personality wrote on X/Twitter that he is “personally committing” more than $2.3m to buy back non fungible tokens purchased through the scheme.
CryptoZoo was launched in 2021 as a Pokémon-inspired animated NFT project billed as “a really fun game that makes you money”.
Participants were told they could pay 0.1 Ether, a cryptocurrency which runs on the Ethereum blockchain, to hatch, breed, collect and trade exotic animal hybrids, as well as their “base eggs” and “base animals”.
At the time, in August 2021, Ether was valued at about £2,300, making each purchase worth about £230.
Paul sold 11,000 NFTs but the game was never released. He has since been hit by allegations that the entire project was a fraud, which Paul has denied.
He wrote: “I never made a single penny from the project, period.
“In fact, the opposite is true, because I spent hundreds of thousands of dollars trying to make it happen.
“Like you, I was highly disappointed that the game was not delivered.”
Claimants will get 0.1 Ether back for each purchase. Ether was valued at £1,788 on 5 January, meaning claimants current stand to lose money.
Hybrid animals won’t be available for the buy-back programme, only the “base eggs” and “base animals”.
There’s more small print too. The terms and conditions say that NFTs won’t be returned that Paul “in his sole discretion deems ineligible”.
That means that even if your refund claim should in theory qualify, Paul can decide not to refund you.
Claimants also have to agree to waive any “actual or anticipated claims against Paul” — that means they have to promise not to sue him for the scheme.
Meanwhile, Paul sought to place the blame at other people’s doors.
In a post on X/Twitter, he blamed the projects failure on “nefarious trading activity related to the project”.
“Nefarious trading activity taken behind our backs, without our knowledge, and with the intention of defrauding us all.
He said he has “filed a lawsuit in federal court in Texas to hold these bad actors accountable”.
Reminder: Paul still faces his own lawsuit for allegedly making millions of dollars of cryptocurrency by promoting a game that ultimately didn’t exist.
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