Logan Paul finally addressed allegations that his cryptocurrency game project CryptoZoo was a scam in a two-minute video to Twitter today.
While he originally responded to a series of videos by online muckraking journalist Coffeezilla with a defensive video on YouTube threatening to sue the reporter, he later took down the response video and posted on a Discord server that he would come forward with a plan to show his accountability to the project.
About a week later, Paul has laid out a three-step initiative that will include paying back fans and attempting to take legal action against potential bad actors in the project.
First and foremost, Paul opened his video by apologizing to Coffeezilla. He added that his initial, now-deleted, response was overly defensive and misguided. He also ended his video by thanking Coffee for his investigation and work to expose wrongdoing inside his team.
“I need to focus my attention where it should be, which is on fans and supporters of mine,” he said.
To start, Paul and his manager are going to “burn” their CryptoZoo tokens, meaning they will no longer have any potential for financial gain in the project. Getting rid of their tokens will increase the value of other tokens held by investors.
Related: What is Logan Paul’s CryptoZoo project? Is it a scam?
Secondarily, and perhaps most important, Paul is committing the crypto equivalent of $1.3 million to allow initial investors an opportunity to get out of the investment for the same price that they bought in at. In essence, he has offered to pay back investors and take on their losses.
Paul also mentioned that he still intends to complete the project. But given that his team was dismantled, as detailed in Coffeezilla’s docuseries, it could be a while before that happens. Paul added that there is a “full internal investigation” and an audit ongoing to uncover details surrounding potential nefarious activity involved in CryptoZoo, and he will seek legal action against the bad actors where possible.
“To say I am disappointed in how this was handled internally is an understatement,” Paul said. “If any money is recovered in the process, it will go right to the community.”
