In the last few years, the world of money has changed a lot. We have seen the rise of digital assets, crypto coins, and the colorful world of the NFT space. Many people heard about these things from famous people on the internet.
When celebrities like Elon Musk, Kim Kardashian, Soulja Boy, or Lil Yachty talk about crypto projects, people listen. They think it is a safe way to make money. One of the biggest names to enter this space was YouTuber Logan Paul.
Logan Paul is very famous on social media. He has millions of fans who trust him. He decided to launch a project called Crypto Zoo. He called it a really fun game that would make people money. It was supposed to be a mix of animals and profit. But things did not go as planned.
Instead of a fun game, it became a huge legal dispute.
Many people lost a lot of money. There are now class action lawsuits and investigations. People are asking if this was a crypto scam or just a project that failed. At The Coin Investor, we believe in smart, informed investing. We want to help you understand what happened.
This story is about hype, broken promises, and the hard lessons of the crypto space.
What is Crypto Zoo?
Crypto Zoo was marketed as a blockchain game. It ran on the Binance Smart Chain. The idea was simple but exciting.
It used NFTs (Non-Fungible Tokens) to represent animals. Logan Paul talked about it on his podcast, Impaulsive. He said he spent months working on it with a big team. The goal was to create a “play-to-earn” game. This means you play the game, and you earn money while doing it. It sounded like a dream for many young investors and fans of Logan Paul. He promised it would be a safe place in the wild world of crypto.
The Concept: A Play-to-Earn NFT Game
The main idea of the Crypto Zoo project was to collect digital animals. These were not just pictures; they were NFTs.
In the game, users would buy base egg NFTs. When you hatch a base egg, you get a base animal NFT.
But it didn’t stop there. You could breed these animals together to make hybrid animals.
For example, if you mixed a penguin and a lion, you would get a new, rare animal. These hybrid animals were supposed to be very valuable.
The rarer the animal, the more money it could make for the owner. Logan Paul called it a fun game that allows you to make passive income.
Who Are the Founders Behind Crypto Zoo?
Logan Paul was the face of the project, but he did not work alone. He had a development team and partners.
However, some of these partners had a bad history. One key person was Jake Greenbaum, who is also known as “Crypto King.”
Another was Eddie Ibanez. As people looked closer, they found that some team members were bad actors. Jake Greenbaum and others were accused of not being honest. Logan Paul later blamed these people for the failure of the project. He said they stole code and lied to him.
This mix of people created a lot of problems for the Crypto Zoo game.
The Role of the $ZOO Token
To play the game, you needed Zoo tokens. This was the in-game currency. You would use $ZOO to buy eggs.
When you played the game, you would earn more $ZOO. People bought these zoo tokens hoping the price would go up.
It acted like a stock or a meme coin (like Dink Doink, another coin Logan Paul promoted).
Investors bought millions of dollars worth of these tokens. They thought if the game became popular, the tokens would be worth a fortune.
How Crypto Zoo Was Supposed to Work?
The plan for Crypto Zoo sounded great on paper. It was meant to be an ecosystem where everyone wins. Logan Paul said he put his own money into it to make it the best NFT project ever. Let’s look at how the game mechanics were supposed to function for the players.
Purchasing and Hatching NFT Eggs
The first step was to buy base eggs. You would go to the official website or an open market.
You needed to connect your crypto wallet to buy them. Once you had an egg, you had a choice. You could keep it, or you could hatch it.
Hatching the egg required zoo tokens. Once hatched, the egg would turn into a random animal.
Maybe you got a turtle, or maybe a gorilla. These were the base animal NFTs. The excitement of not knowing what you would get was part of the fun. It was supposed to be like opening a pack of trading cards.
Breeding Hybrid Animals For Yield
The real innovation was supposed to be breeding. If you had two base animal NFTs, you could breed them.
This would create hybrid animals. These hybrids were unique.
They looked different and had different stats. The game was designed so that hybrid animals were more valuable than base animals. The system would burn (destroy) the tokens used for breeding.
This was meant to make the remaining tokens more rare and valuable. This is a common strategy in crypto projects to keep prices high.
The Promise of Passive Income
The biggest selling point was “passive income.” This means making money without working. Logan Paul told his fans that the animals would earn yield. Just by holding the NFT in your crypto wallet, you would earn daily zoo tokens.
The rarer your animal, the more daily tokens you would get. It was pitched as a way to build wealth easily. Fans thought they could pay their bills just by playing this really fun game. This promise of easy money is what attracted so many Crypto Zoo buyers.
The Crypto Zoo Scandal and Criticism
Sadly, the game did not work as promised. In fact, for a long time, the game did not work at all. The Crypto Zoo scandal began when people realized the game was broken. The excitement turned into anger.
Timeline of Delays and Broken Promises
The project launched in 2021.
People spent millions buying eggs and tokens. But when the launch day came, the game didn’t work. You could not hatch eggs properly. You could not breed animals. The yield system was not paying out.
Logan Paul and his team kept saying it was coming soon. They blamed technical bugs.
But months passed, and nothing happened. The “game” was just a website with pictures of eggs. The value of the zoo tokens started to crash. Investors began to panic. They felt like they had been tricked. This was not the innovation they were promised.
Coffeezilla’s Investigation Into Crypto Zoo
The truth really came out because of a YouTuber named Stephen Findeisen, known as Coffeezilla.
He is an internet detective who exposes scams. Stephen Findeisen did a three-part series on Crypto Zoo.
Coffeezilla interviewed the “bad guys.” He talked to Jake Greenbaum. He looked at the blockchain data. He found that the development team had not paid the coders properly. He found out that the founders had secretly kept many tokens for themselves.
Coffeezilla showed that the game was never finished. He called out Logan Paul for not doing his due diligence.
This investigation was shocking. It was watched by millions of people. It made the Crypto Zoo scandal national news.
Accusations Of A “Rug Pull” and Insider Trading
A “rug pull” is when creators of a crypto project take the money and run away, leaving investors with nothing.
Coffeezilla and others accused the team of a rug pull. There was also evidence of insider trading. This means the team bought tokens before the public knew about the project. They bought low and planned to sell high when the fans bought in. We saw suspicious activity in an anonymous crypto wallet linked to the team. Even Paul’s public wallet showed strange movements. The accusations were serious.
They included stealing money, lying to investors, and market manipulation. It wasn’t just a failed game; it looked like a calculated crypto scam.
Logan Paul’s Response to the Crypto Zoo Allegations
When the Coffeezilla videos came out, Logan Paul was very angry. He did not apologize at first. His reaction made things worse.
Initial Defenses and Threats of Litigation
Logan Paul made a response video.
He attacked Stephen Findeisen. He said Coffeezilla was lying to get views. He threatened to sue him for defamation.
Logan Paul said he was the victim. He said he was betrayed by his team, like Jake Greenbaum and Eddie Ibanez. He claimed he lost money too. He tried to distance himself from the project.
But the crypto community did not buy it. They saw screenshots and heard the recordings. The backlash against Logan Paul was huge. People compared it to other celebrity failures, like when Kim Kardashian got in trouble with the Exchange Commission (SEC).
The Pivot to Accountability and Apology
After a few days, Logan Paul deleted his angry video. He realized he was wrong.
He apologized to Coffeezilla and the cryptozoo buyers. He admitted that mistakes were made. He said he wanted to make things right.
He promised to fix the situation. He said he would take accountability for the Crypto Zoo project. This was a big change from his threats.
He announced a plan to give money back to the people who lost it.
The Current Status of Crypto Zoo
So, where is Crypto Zoo now? Is it a game you can play? The short answer is no. The story has moved from the internet to the courtroom.
Details of the Crypto Zoo Refund and Buyback Program
Logan Paul announced a buyback program. He promised to buy back the Base Egg and Base Animal NFTs from investors.
He set aside about $2.3 million for this. However, there was a catch. He would only pay the original mint price (0.1 ETH) per egg.
This was much less than what many people paid when the price was high. Also, to get the refund, you had to agree to the terms of use of the buyback. These terms said you could not sue Logan Paul.
You had to waive your rights to any legal recourse.
The refund did not cover the zoo tokens. If you held the tokens, you got nothing. The tokens are now basically worthless.
Is the Game Officially Dead?
Yes, the Crypto Zoo game is dead. Logan Paul confirmed that the game will not be released. He said it is not possible to finish it because of the bad code and legal issues. The website is gone or inactive.
The hybrid animals will never exist.
The dream of a really fun game on the Binance Smart Chain is over. It serves as a digital graveyard of a failed NFT project.
Ongoing Lawsuits and Legal Actions
Because many people were unhappy with the refund offer, legal battles started. A class action lawsuit was filed against Logan Paul and his team. A lawyer named Tom Kherkher, also known as Attorney Tom, is leading the fight. He represents many investors who lost money.
The lawsuit was filed in the Western District of Texas. The lawsuit accuses them of breach of contract, fraud, and unjust enrichment.
Attorney Tom argues that Logan Paul used his fame to trick people. The lawsuit says the buyback is not enough.
They want full compensation for the losses.
This legal dispute is still ongoing. It involves looking at Paul’s team, their emails, and their crypto wallet history.
FAQ’s:
Is Crypto Zoo A Scam?
Many people believe it was. While Logan Paul says he intended to make a real game, the actions of his team look like a scam. They took the money and did not deliver the product. The term “soft rug pull” is often used. It is definitely a failed project with many bad actors involved.
Did Logan Paul Refund Crypto Zoo Investors?
He started a refund process, but only for the NFTs (eggs and animals), not the tokens. The refund requires you to sign a legal waiver. Many people feel this refund is too small compared to what they lost.
Can I Still Play Crypto Zoo Today?
No. The game does not exist. You cannot hatch eggs or breed animals. The official website does not offer gameplay.
What Happened to the Money Invested in Crypto Zoo?
Millions of dollars were lost. Some went to the developers who allegedly stole it. Some went into the pockets of the founders. Most of the value just disappeared when the price of the zoo tokens crashed.
What is the Difference Between the $ZOO Token and the Egg NFTs?
The $ZOO token was the money used in the game. The Egg NFTs were the items you bought to get animals. The refund only covers the Eggs, not the $ZOO tokens.
Conclusion
The story of Crypto Zoo is a warning for everyone in the crypto space. It shows that even big celebrities like Logan Paul can promote projects that fail. It teaches us the importance of due diligence. Before you buy digital assets, you must research the team and the technology.
Just because a famous person like Michael Cera, Lake Bell, or Elon Musk is mentioned in the news with crypto, or because Soulja Boy and Lil Yachty promote a coin, it does not mean it is safe. We have seen similar issues with other projects like Dink Doink or the Liquid Marketplace (another venture by Paul). The Crypto Zoo project promised innovation and fun. Instead, it delivered losses and lawsuits.
From the New York Times to YouTube comments, everyone is talking about this failure. Law enforcement and the Exchange Commission are paying closer attention to these things now.
At The Coin Investor, we want you to be safe. We want you to find real opportunities, not rug pulls.
Whether you are looking at Bitcoin or a new NFT project, always be careful. Do not blindly follow hype. The Crypto Zoo scandal is a sad reminder that if something sounds too good to be true, it probably is.
This case involving Attorney Tom, the Western District of Texas, and the angry crypto community will be remembered for a long time. It is a lesson on why trust and transparency are the most important things in the digital economy.