YouTuber, influencer, and wrestler Logan Paul has been accused of fraud and breach of contract, among other things, in a class-action lawsuit filed against him over an NFT game he created.
The lawsuit was filed on February 2, 2023, in Austin, Texas, by lawyer Tom Kherkher on behalf of a Texan police officer “and all other similarly situated individuals” who purchased digital currency relating to the game.
The suit alleges that Logan Paul and his company CryptoZoo Inc. engaged in fraud, breach of contract, unjust enrichment, violation of Texas’ Deceptive Trade Practices Act (DTPA), and negligence when selling tokens for the game.
The game in question is called CryptoZoo, a pet project of Paul that has been called a scam by YouTube investigator Stephen “Coffeezilla” Findeisen. The game was said to allow players to buy into a cryptocoin, which they could then use to buy and sell eggs.
The eggs were said to hatch into animal-based NFTs, which are a kind of digital token stored on a blockchain, a technology that allows permanent online databases to be read and added to. The animal NFTs would then be used to breed new NFTs, which could be sold on to other players for more cryptocoins.
Coffeezilla had accused Paul of engaging in what he called “shady practices”, criticising the influencer for not completing the project and for marketing it for children. He also accused Paul of stealthily launching the game without the public knowing, which allowed Paul and his team to buy up the cryptocoin to inflate its value before publicising it.
Paul subsequently responded to the claims, publicly refuting them and threatening to launch defamation action against Coffeezilla, before backflipping on the matter and deleting his response video.
Kherkher, the lawyer involved in filing the case, said on Twitter: “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 numerous cases heading to arbitration on the matter.)”
NFT games such as Paul’s have shown to be a magnet for lawsuits, with many projects in the space attracting legal attention. The Pokemon Company recently took an NFT game to court in Australia, due to what it claims is an infringement of its intellectual property rights.
Written by Oliver Brandt on behalf of GLHF.
Story Credit: news.com.au