Logan Paul’s CryptoZoo Scam Allegations Explained

Don’t give Logan Paul the hydrogen fuel idea. The douche-Tuber known for filming dead bodies in Japan has allegedly made millions with a dysfunctional token project, and like Miles Bronn before him, he doesn’t care if his success comes at the expense of others. Paul did not accept the application until 15 months later CryptoZoo, a “really fun game that makes you money” launched in September 2021 with Binance Smart Chain. Application using OpenSea for egg NFTs purchased with Ethereum a Pokemon-An inspired trading game where users buy eggs, hatch them, and then breed animals to earn special $ZOO tokens. Besides, it kind of shows you photos of animals. For months, players have been investing thousands into the app, many of whom heard about the Play-2-Earn program from the influencer’s August 17, 2021 podcast episode. impulsive, just looked at a digital egg image while losing thousands of dollars. Then in late 2022, YouTuber Stephen Findeisen, who investigates cryptocurrency scams on his channel Coffeezilla, released a three-part series. CryptoZoo alleging numerous business blunders, he also answers the internet’s most pressing question: Is Logan Paul really an SBF-level con artist?

No, save your brain cells. Paul isn’t Sam Bankman-Fried—he is, and always will be, Billy McFarland, who was cheated on by Anna Delvey. Paul and his manager have relied on too many “bad actors,” as he calls them in his latest unapologetic video, including Jeff Levin, Eddie Ibanez, and Jake, all looking for their own profit. CryptoKing” Greenbaum. “Logan wasn’t smart enough for what he was trying to build,” CryptoKing said, calming him down a bit, but that didn’t stop Paul from trying to be the ultimate con.. Below, Logan Paul claims you can’t KO.

Let’s start with why Logan Paul’s unapologetic response video happened in 2023.
The cryptocurrency community wants something they thought they never wanted: accountability.

In his Jan. 3 video, “My Response to Coffeezilla’s Fraud Allegations,” Paul didn’t explain why the project didn’t live up to the hype it created 15 months after its launch, instead claiming he would sue Coffeezilla for defamation. . As Paul originally promoted it to his fans, his game was supposed to allow you to “breed” your own NFTs as pets, starting with eggs that cost 0.285 ETH (about $340 today). But on September 1, 2021, just a month after the official launch, the developers announced their departure. CryptoZoo and started working on their own version, ZOO laboratories. “While ZOO’s development team worked tirelessly around the clock, Logan’s team stole tokens from all V3 investors while lying to the public about paying developers $1 million.” He tweeted on October 6, 2021. CryptoZoo the players were waiting anything On “Hatch Day” November 3, 2021, the eggs were cracked open to reveal not “exotic hybrid animals,” but stock images of random animals like ducks, penguins, and reindeer, as Paul showed in his response video.

To be honest, a functional cryptocurrency app should have been expecting a lot from a person criticized for the DinkDoink meme token in the summer of 2021. But in a statement in August 2021 impulsiveLogan claimed to have personally spent thousands out of pocket to develop the game, promising fans something “different”.

How did Coffeezilla expose Logan Paul?

In an episode of Coffeezilla’s “Exploring Logan Paul’s Biggest Scams” series, “Z,” identified by Paul as Zach Kelling, CTO of ZOO Labs, claims that his team of “50 engineers” earns “$50,000” a week. ” burn rate to build the game and blockchain technology. And the developers were never paid $1 million or given the 5 percent of tokens verbally promised by one of them. CryptoZoofounders, Eddie Ibanez. Ibanez was exposed in 2022 by Billy Penn reporter Adam Robb for claiming he went to MIT, worked with the CIA and even helped the Eagles win a 2018 Super Bowl ring. Although another co-founder and Paul’s manager, Jeff Levin, was informed of the fraud in advance. CryptoZoo launch, Ibanez remained on the team. In his response, Paul is more interested in investigating Kelling’s (irrelevant) old arrest records and his Instagram posts, which are supposed to prove that only three of his associates were employed to legitimize his claims. CryptoZoo. A quick Facebook scroll shows Keller on Discord with a 26-member “Zoo team” on July 25, 2021, one month later. before Paul called the development team “massive” and said on his podcast that it cost “a million dollars.” In this video, Paul doesn’t address the second developers Coffeezilla found fired due to lack of payment just two months after being hired by Jeff Levin in July 2022.

How Much Money Did Logan Paul Make If No One Gets Paid?
Sorry, we’ll get back to that. We’re almost halfway through and still have another assassin to introduce.

The last co-founder and consultant, CryptoKing, came up with the smallest investment but the biggest idea. They would “secretly launch” the $ZOO coin presale on July 11th, 2021 and receive the liquidity pool for the discount before Paul announced it publicly on August 18th. According to Coffeezilla, on “$ZOO DAY,” every founder stuck to the plan except for CryptoKing, who received $200,000—double what Paul received—multiplying his initial investment, but bringing the value down to $40 million. Shortly before the token’s public launch on September 1st, a second official $ZOO token was created, doubling the wallet of the holders of the first. I mean, Apart from 250 accounts, including five wallets CryptoKing used to purchase additional tokens. “You are a fraud. You’re a liar,” CryptoKing tweeted to Paul, according to messages seen by Coffeezilla. “You betrayed your community”

So he tried to cheat on Logan and Logan cheated on him back?
According to CryptoKing, his actions are “ethically questionable,” he reasoned in an interview with Coffeezilla. And it’s hard to tell who’s cheating on whom. In part three, “Ending Logan Paul’s Biggest Scam,” Coffeezilla shares the team’s working papers CryptoZoo They describe their legitimately dubious strategy for $ZOO tokens. The amount of tokens is 2 trillion, a quarter of which was earmarked for “development, marketing and founders” and would be locked so that they could not be sold for six months. Then 10 percent will be paid monthly for ten months. However, coins purchased during the secret release – also known as first version tokens – were not locked. In fact, they could be sold at any time during the game. In another document, the founders set only a few rules: “No sales up to 200 million market value and no more than 3% impact on the market. And do not influence the market by more than 10% per day.

The SEC will call this market manipulation, a charge that could mean jail time. Someone must have figured it out, because suddenly the plan changes: Logan will call when he can sell each founder. “Your tokens don’t leave your wallet,” Logan says in a group chat that doesn’t include CryptoKing, according to screenshots obtained by Coffeezilla. “It’s a game.”

But CryptoKing says that not all of his tokens were blacklisted (and he eventually bought those tokens back.) Coffeezilla’s blockchain research shows that CryptoKing Jake made more than $6 million in profits. And he fully admits that yes, he did make “a few million” from the project, even though he didn’t deliver on the promises he made to his users. “You could say I’m selling out, and that’s true,” Coffeezilla said. As long as it’s accompanied by the phrase “He was the founder who was supposed to give 5 percent of the project and never got it.” [locked founder] tokens or paid, worked on the project for about a year.’”

During all this time, Eddie Ibanez reportedly earned around $1.7 million with $ZOO, even though Eddie is out of the company until July 2022. Paul was and is ready to make millions, but he and his manager haven’t sold the tokens they bought for $100,000 each. Vulture has reached out to Jeff Levin and Logan Paul for comment. Like his fans and investors, Paul probably still thinks he can get his money’s worth. The ethereum from the Egg NFTs was paid into two anonymous coin-based accounts, Coffeezilla reports: $364,000 (92.7697 ETH) to one and $1 million (260,000 ETH) to another. Half of the money earned on the Binance Smart Chain, $1,314,225,001.8 (currently about $79,875,629) was earmarked for “wildlife philanthropy and CryptoZoo development.” CryptoZoo team.

How is Logan Paul threatening a lawsuit now?
He alleges that Coffeezilla unlawfully used a private conversation with Jeff Levin in addition to “defamation” during the exposé. “His defamation suit doesn’t point out the inaccuracies in my story, so it’s just legal threats from a millionaire who’s angry about being implicated in a scam,” Coffezilla said in a statement to Vulture. “Unfortunately, this is what happens when you sell a cryptocurrency project that never works for millions of dollars. As for the call, I’m in one-party state Texas and Jeff knew it was on the record. “Logan is just trying to avoid responsibility and should apologize.”

To investors CryptoZoo Paul, who may be considering his legal options, says they will still see a turnaround. “Who are you when the timeline ends?” he asks Coffeezilla. Zach Kelling, who still maintains the original code, tweeted on January 4 that he “Release #cryptozoo exactly as intended“If Paul is paying his bill: ‘Or keep cheating steam apps while looking for more developers to cheat?’

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