3 - 4 minute read
Coffeezilla’s three-part series on Logan Paul’s cryptocurrency venture, CryptoZoo, has shed light on what appears to be a massive fraud that ripped off thousands of investors. The YouTube channel, known for its investigative programming, spent a year investigating the inner workings of the project and the dubious business practices of Paul and his colleagues.
According to the series, CryptoZoo was advertised as a “fun game that makes you money,” but in truth, it was a poorly constructed blockchain game that never actually functioned. The initiative apparently generated millions of dollars from investors attracted by Paul’s zealous promotion of it on his podcast, Impulsive, and social media outlets. However, as evidenced by the investigation, Paul’s connection with CryptoZoo was not as extensive as he initially stated. In actuality, the YouTube star appears to have abandoned the project, leaving numerous investors in limbo. This includes individuals who lost tens of thousands of dollars or perhaps half a million dollars in the project.
Additionally, Coffeezilla’s research discovered evidence of questionable business practices within the project, such as the use of a fictitious orphan in marketing materials and the mixing of client assets with those of a sister company. There were additional reports of loans and investments made by insiders that were not reported to investors. In addition, the inquiry discovered that CryptoZoo co-founder Eddie Ibanez had fled to Switzerland with the game’s source code and held it hostage for $1 million, never giving it to the team or paying the promised 5% of tokens and $1 million to one team member.
Evidence suggests that billionaire investor Tim Draper was an early backer of CryptoZoo and may have had a hand in luring investors.
Logan Paul’s Involvement in CryptoZoo
- Promoted CryptoZoo as a “fun game that earns you money” on social media and podcast
- Abandoned project, leaving thousands of investors in the lurch
- Used fake orphans in marketing material
- Co-mingled customer assets with those of a sister company
- Engaged in insider loans and investments not properly disclosed to investors
- Implicated billionaire investor Tim Draper in project
Coffeezilla’s series raises severe concerns regarding Logan Paul’s behavior and CryptoZoo’s authenticity. It serves as a cautionary story for people considering investing in cryptocurrency initiatives, emphasizing the significance of conducting extensive research and exercising due diligence. Those who fell prey to the hoax may have legal remedies, but it remains to be seen if Paul and his collaborators will be prosecuted.
