Social media star Logan Paul announced Thursday that he is launching a $2.3 million buyback program to refund users who purchased NFTs for his failed cryptocurrency game CryptoZoo.
The game, which Paul initially pitched as allowing users to earn money by buying and hatching digital “egg NFTs” to reveal collectible animals, never fully launched after users alleged it was a scam.
This led to a class action lawsuit being filed against Paul and his former business partners last year.Â
In a video statement, Paul vowed to “make things right” and is now delivering by allowing users to submit claims on a website to receive refunds for their “Base Egg” and “Base Animal” NFT purchases at their original prices.
Paul stated he never personally made any money from CryptoZoo and instead spent hundreds of thousands of his own dollars trying unsuccessfully to launch the game. He blamed “bad actors” and former partners for stealing funds and sabotaging the project.
Paul has now filed a separate lawsuit against two former business partners, Eduardo Ibanez and Jake Greenbaum, accusing them of fraud and deceit. An investigation allegedly uncovered nefarious blockchain activity indicating funds were stolen.
While Paul initially planned to refund users in crypto, fluctuating prices meant users would not recoup their full losses. The buyback program will repay the exact dollar amounts spent.
Paul also confirmed CryptoZoo will not relaunch, citing regulatory hurdles. He said the buyback is intended for users who wanted to play the game, not those who gambled on the crypto market.
Also Read: Trump Starts Selling Ethereum After Months of NFT Royalties
