CryptoZoo is a crypto project initiated by Logan Paul in 2021. More explicitly, it is a fully autonomous Play-to-Earn ecosystem for earning NFTs. While the project is already struggling to get off the ground, Logan Paul runs into a new problem. The founder of CryptoZoo finds himself in fact subject to a class action. The plaintiffs accuse him of rug pull or “carpet pulling”.
CryptoZoo and Logan Paul charged with theft
Not so long ago, Logan Paul and CryptoZoo found themselves at the center of several debates. Many investors and users were indeed wondering if this crypto project was ultimately just a scam. As the days progressed, the ecosystem revealed its true face.
CryptoZoo and Logan Paul are currently the subject of a Collective action. The petition was filed on February 2 by the law firm Tom Attorney. This legal proceeding was initiated by Don Holland, one of the investors in the crypto project. He and other complainants accuse Logan Paul of theft. They also consider CryptoZoo to be a fraudulent company.
More precisely, we are talking about several million dollars promised to NFT investors. Unfortunately, the latter have never seen the color. Worse still, all of their funds are gone. In crypto jargon, this is called “rug pull”.
A recovery plan already in place!
To reassure its investors, Logan Paul announced the establishment of a recovery plan. Worth $1.5 million, this plan would be divided into three phases:
- Burn its Zoo tokens to boost the value of investors’ tokens
- Introduce 1000 ETH to allow crypto investors to recover their initial stake (the latter amounts to 0.1 ETH)
- Launch the game so much mentioned when launching the crypto project
Despite the recovery plan laid out by Logan Paul, crypto investors remain skeptical of CryptoZoo’s solvency. The outcome of the current collective action will also be decisive for the future of this crypto project.
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