A GROUP of CryptoZoo players from Texas have filed a class-action lawsuit against Logan Paul over the game.
The lawsuit accuses the influencer 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.
CryptoZoo promised its players to buy and sell NFTs with its new cryptocurrency in the form of in-game eggs.
The eggs were supposed to be able to hatch into different NFT animals, which could then go on to breed new NFTs.
Logan Paul claims that the team invested millions into the game, which was missing features upon its release.
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While Paul still claims that all promised features will eventually be added into the game.
He has also offered compensation to some players who still own NFTs.
The game has had a rough development with one of the developers running away to Switzerland with the game’s code.
Another founder Jake ‘The Crypto King’ Greenbaum admits to having sold millions of dollars worth of the cryptocurrency and has since been removed from the team.
The lawsuit targets both Paul, his manager Jeffery Levin, and other founders of the team, such as Greenbaum.
On Twitter one of the lawyers handling the suit posted: “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.”
YouTuber Stephen ‘Coffeezilla’ Findeisen previously launched an investigative report that accuses Paul of several shady practices.
The main accusation which Paul has not refuted, is that the group of founders stealth launched the game in order to purchase the cryptocoin at a lower rate.
Most founders then held onto the currency in order to artificially inflate its value.
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Paul and his team have not spoken out about the lawsuit at the time of writing.
Written by Georgina Young on behalf of GLHF.