YouTuber Logan Paul announced a $2.3 million buyback program to repay participants in his defunct NFT-based game CryptoZoo, which he launched in 2021.
Paul shared details of the buybacks in an X post on Thursday. The game was supposed to allow players to purchase base egg non-fungible tokens (NFTs), or unique digital assets. Eggs would hatch into base animal NFTs, which could then be bred into hybrid animal NFTs. Players were supposed to be able to earn $ZOO tokens, the in-game cryptocurrency that could be used to buy more NFTs or cashed out, by hatching eggs.
Only base eggs and base animals are eligible for the buyback program. Each eligible NFT can be exchanged for 0.1 Ethereum, which is a popular cryptocurrency.
Paul faced criticism for the CryptoZoo project after participants said the game did not work. Paul and his associates were named in a class-action lawsuit in February 2023. The lawsuit alleges that CryptoZoo is a “fraudulent venture.”
“Defendants promoted CryptoZoo Inc.’s products using Mr. Paul’s online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products,” the lawsuit said. “Unbeknownst to the customers, the game did not work or never existed, and Defendants manipulated the digital currency market for Zoo Tokens to their advantage.”
Participants in the buyback program must waive their right to sue Paul over CryptoZoo.
Paul is one of numerous public figures to be scrutinized for their promotion of NFTs and cryptocurrency, which have been criticized in the past for their volatile financial values. Celebrities like Cristiano Ronaldo and Kim Kardashian have been sued in the past for promoting various NFT and cryptocurrency projects.
When asked for comment, legal representatives for Paul referred NBC News to his statement on X.