Video Games

Logan Paul hit with lawsuit over CryptoZoo

Class action lawsuit alleges fraud, among other things

Marco Wutz

Logan Paul hit with lawsuit over CryptoZoo
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.

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Marco Wutz
MARCO WUTZ

Marco Wutz is a writer from Parkstetten, Germany. He has a degree in Ancient History and a particular love for real-time and turn-based strategy games like StarCraft, Age of Empires, Total War, Age of Wonders, Crusader Kings, and Civilization as well as a soft spot for Genshin Impact and Honkai: Star Rail. He began covering StarCraft 2 as a writer in 2011 for the largest German community around the game and hosted a live tournament on a stage at gamescom 2014 before he went on to work for Bonjwa, one of the country's biggest Twitch channels. He branched out to write in English in 2015 by joining tl.net, the global center of the StarCraft scene run by Team Liquid, which was nominated as the Best Coverage Website of the Year at the Esports Industry Awards in 2017. He worked as a translator on The Crusader Stands Watch, a biography in memory of Dennis "INTERNETHULK" Hawelka, and provided live coverage of many StarCraft 2 events on the social channels of tl.net as well as DreamHack, the world's largest gaming festival. From there, he transitioned into writing about the games industry in general after his graduation, joining GLHF, a content agency specializing in video games coverage for media partners across the globe, in 2021. He has also written for NGL.ONE, kicker, ComputerBild, USA Today's ForTheWin, The Sun, Men's Journal, and Parade. Email: marco.wutz@glhf.gg

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