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Logan Paul to buy back NFTs sold to CryptoZoo investors, but there’s a catch

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Logan Paul has announced that he intends to repurchase eggs associated with the unsuccessful non-fungible token (NFT) game CryptoZoo, committing $2.3 million to the cause. However, individuals seeking a buy-back must agree not to pursue any legal action against Paul, including the ongoing class action lawsuit against him.

The opportunity to claim the buybacks is available until Feb 8, and Paul is offering claimants 0.1 Ethereum (ETH) for each eligible returned NFT, equivalent to approximately $224. Although this amount is less than what claimants may be entitled to if the class action lawsuit is successful, it is still a form of compensation.

CryptoZoo’s basic buy-in included ‘Base Animals’ or ‘Base Eggs’, which were NFTs intended for in-game use. The game, initially promoted on YouTube in August 2021, was projected to be a lucrative and enjoyable game but was never completed.

Base Eggs and Base Animals were often priced at over 1 ETH each, which is more than $2200. Therefore, the buy-back amount offered by Paul is significantly lower. With the added condition that claimants “are waiving any actual or anticipated claims against Paul,” there is speculation that Paul is attempting to limit his financial losses.

Logan Paul faces class action lawsuit over CryptoZoo

The damages from a class action lawsuit can include full refunds of the initial investment, as well as additional damages and fees. According to Rob Freund, a lawyer interviewed by TechCrunch, “Paul may be betting (or at least hoping) that enough people who would otherwise be potential class members will take him up on this offer and drastically reduce his potential exposure in the pending case by doing so.” This could potentially lead to a more favorable settlement for Paul.

This week, Paul filed a counterclaim to the class action suit, accusing two individuals involved in the game of being “con artists” who “sabotaged” CryptoZoo. He has made the full counterclaim document public.

Paul asserts that he did not profit from CryptoZoo, claiming, “In fact, the opposite is true, because I spent hundreds of thousands of dollars trying to make it happen.” He also stated that the game will not be released, revealing that he spent $400,000 on its development and encountered unforeseen regulatory obstacles that would further delay the buy-back process.

Featured image credit: Erik Drost via Wikimedia Commons and @CryptoZooCo

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