YouTuber Logan Paul has spoken out on the controversy surrounding his CryptoZoo NFT gaming venture, asserting that it was not a fraudulent scheme.
Journalist Graham Bensinger interviewed Paul about the allegations against the project in a recent documentary, "5 Months with Logan Paul."
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The controversy started in December 2022 when crypto journalist Stephen "Coffeezilla" Findeisen posted a series of YouTube videos accusing Paul of scamming investors.
Bensinger addressed Coffeezilla's allegations, highlighting the argument that people lost money because of the exposure that Paul brought to the venture. The YouTuber admitted that this statement had elements of truth; however, he argued that it did not describe a scam.
Paul further explained that the project's failure was due to his inexperience rather than malicious intent:
I took on a project that I was simply incapable of handling at the time.
Moreover, Paul disclosed the personal toll the controversy has taken, revealing that he had lost half a million dollars and suffered from mental issues as a result of the project's fallout.
In addition to responding to the accusations, Paul said he would "take care" of those who portrayed CryptoZoo as a scam he orchestrated. He highlighted that the narrative around CryptoZoo remains incomplete and criticized how it unfairly cast him in a negative light.
In January 2023, he threatened to take legal action against Coffeezilla; however, he later abandoned this idea, claimed he would take accountability, and announced a three-step recovery plan.
The investors had to wait a year for the refund scheme to be initiated. During this period, Paul faced a class-action lawsuit, accusing him of executing a "rug pull."
This whole situation highlights the issues that surface when ambition meets reality, warning others to evaluate the risks before embarking on such projects.
Logan Paul is not the only person who fell under Coffeezilla's microscope. His friend and business associate KSI was also involved in a crypto controversy this year when he was accused of using pump-and-dump schemes.
