Crypto Zoo Lawsuit Attorney

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Logan Paul is a well-known influencer and YouTube content creator. Attorney Tom has taken legal action against Paul and other defendants over the alleged CryptoZoo scam. Additional named defendants include:

  • Jeff Levin
  • Danielle Strobel
  • Ophir Bentov
  • Eddie Ibanez
  • Jake Greenbaum

If you have significant losses after purchasing CryptoZoo eggs or zoo tokens and want to learn more about your legal options, call Attorney Tom‘s Crypto Zoo lawsuit attorneys at (713) 244-6363 for a free consultation.

What Is CryptoZoo?

Logan Paul created CryptoZoo as an NFT-based play-to-earn game. Players must buy in-game currency called zoo tokens to play. They can use those tokens to purchase NFT eggs. Players can then hatch their purchased eggs to reveal an image of the animals they have.

There are various animals included in the game. Hatching an egg can result in any of the animals. Players can create hybrid animals by breeding any two of their hatched animals. That makes a hybrid animal NFT.

For every hybrid animal, players earn daily zoo tokens. Hatched or hybrid animal NFTs are more valuable and earn more tokens the rarer they are.

Players can decide whether to burn or keep their hybrid NFT. Keeping it allows them to continue earning daily tokens. Burning the NFT means the player receives the zoo tokens earned from the animal to use toward buying more eggs or cashing out of the game.

Logan Paul promoted the game to work this way.

In 2021, Paul started promoting CryptoZoo as a fun game players can use to make money. He represented the NFT eggs and hybrid animals as unique and different from other computer-generated NFT art. He explained that a team of talented artists would hand-make the CryptoZoo NFTs.

Representations of the game during the marketing and promoting efforts led to millions of dollars of zoo tokens and egg purchases. However, the game isn’t complete after nearly two years. The promised hand-made NFT art also looks like stock photos of animals made with photoshop.

Purchasers suffered millions of dollars in losses after the market price of the zoo tokens and NFTs collapsed.

Feuding YouTube Creators

Stephen “Coffeezilla” Findeisen released a three-part video series about Logan Paul’s multiple illicit activities. Paul threatened to sue the YouTube creator over false allegations that the game was a scam.

In the video, Coffeezilla accused CryptoZoo of convincing the public to invest in worthless digital assets. He claimed Logan’s company scammed these investors out of their money.

Logan was already facing backlash over his game when Coffeezilla published the videos. It prompted Logan to apologize on the company Discord channel. He said CryptoZoo would apologize, take accountability, and announce a plan. He also deleted the video of him threatening Coffeezilla and apologized. Coffeezilla posted to his social media channels confirming that he received the apology.

Three-Step Plan to Resolve Victims’ Losses

Logan Paul announced a plan for those who suffered losses in CryptoZoo. The three-step plan includes:

  • Paul and co-founder Jeff Levin will burn their zoo token holdings to avoid financial upside in the game and give the tokens more value
  • Create a rewards program and personally commit 1,000 Ether for investors to burn their NFTs and receive the initial 0.1ETH mint price back
  • Finish and deliver the game as promised

Paul also said any money recovered during his three-step plan would go to the community.

There are multiple problems with this plan. Although Paul tweeted that he was personally putting up $1.3 million for the rewards program, the price of ETH has increased. Since the tweet, the price of ETH has risen to roughly $1,548.

Another significant problem with the three-part plan is that the refund only includes base animals and eggs. It doesn’t account for holders of hybrid animals or zoo tokens.

The Ether refund doesn’t equal the value of the eggs when players first purchased them. That means victims likely won’t receive the money they need to compensate for their total losses.

Pursuing Compensation for CryptoZoo Losses

At Attorney Tom, we are pursuing action on behalf of our clients against Paul Logan and other defendants for misconduct, including:

  • Fraud
  • Unjust enrichment
  • Negligence
  • Conspiracy to commit fraud
  • Violation of Delaware’s prohibited trade practices
  • Express breach of contract
  • Implied breach of contract
  • Fraudulent misrepresentation
    • You might be entitled to compensation for your losses. However, the terms of service you agreed to when you purchased zoo tokens or eggs might prevent you from filing a lawsuit.

      The CryptoZoo terms of service include an arbitration provision. It requires mandatory binding individual arbitration in the state of Delaware for any disputes involving the game. That means you’re not allowed to sue Logan in civil court to recover compensation for your losses.

      Arbitration is a form of alternative dispute resolution (ADR) to resolve a legal matter outside of court. Instead of filing a lawsuit and letting a jury or judge decide on the case, a neutral third party, called an arbitrator, decides and enters a legal judgment with the court.

      The process is informal but similar to a trial. The plaintiff’s attorney and defense attorney can make opening statements, call witnesses, and present evidence. The arbitrator reviews the evidence and listens to each side’s arguments. They can determine whether the plaintiff is entitled to compensation and, if so, how much.

      Since the CryptoZoo terms of service require binding arbitration, both parties must sign a contract agreeing to resolve the dispute before an arbitrator at the beginning of the session. Typically, the arbitrator’s decision is final. Filing an appeal is not permitted, especially if the signed contract waives that right.

      Class actions are common in cases involving large groups of individuals harmed by the same defendant. However, the terms of service might also include a class action waiver. That means you waive your right to join a class action lawsuit against Paul Logan and other defendants involved in the alleged CryptoZoo scam.

      Although you might have agreed to waive your right to a class action and participate in binding arbitration to resolve a dispute, those provisions aren’t always legally enforceable. Attorney Tom can review your case to determine whether there’s a way around those clauses so you can pursue legal action in court.

      Contact an Experienced CryptoZoo Lawsuit Lawyer Today

      At Attorney Tom, we believe in protecting our client’s rights and fighting against those who harm them. You should not suffer the consequences of someone else’s fraud, negligence, and other misconduct. We are ready to help you pursue the compensation you deserve.

      We filed our first arbitration action and predict there will be more in the future. If you want to find out if you qualify for a CryptoZoo arbitration claim, call Attorney Tom at (713) 244-6363 for a free consultation now.


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