Ragpull or rugpull is the term used to describe the sudden departure of developers from a project along with all the funds available for withdrawal. Rugpull is often done with obscure tokens that are first added to decentralised exchanges and then dropped once enough investors have bought it.

In this case, the term is not used quite correctly, because more often than not, ragpoll refers to the withdrawal of cryptocurrencies from the liquidity pools on decentralised exchanges – that is, essentially the money at the expense of which trades are conducted. In such a scenario, the value of the developers’ project token depreciates and its holders lose money. The concept became especially popular after the so-called DeFi-leth in 2020, and the Uniswap exchange was the first to carry out such a scheme.

Interface of the decentralized exchange Uniswap

In this case, CryptoZoo game was created essentially as a HYIP, to raise funds from investors and then close the project. However, this time the situation didn’t end so easily for Logan, who has repeatedly PR’d and created dummy projects.

What Logan Paul is being sued for

CryptoZoo is an NFT-powered game released in 2021 that was positioned as an “autonomous ecosystem” where each player, as a virtual zoo keeper, can buy, sell and trade exotic animals on the blockchain, hatching them from their eggs at the time of purchase. In addition, some lucky players were promised a special chance at a card that would guarantee several thousand dollars every month for the rest of their lives.

However, as it became clear after the launch, no animals were emerging from some NFTs at all, which meant users were essentially wasting money on egg pictures. But that was only the beginning of the disaster.

CryptoZoo

According to Decrypt’s sources, when Paul and his team published images of animals in CryptoZoo, users noticed a curious fact: the avatars in the game turned out to be just stock images of ordinary animals. They were merely crossed with each other to create similar creatures, but overall the project looked like a crude development, not worth noticing.

However, Logan Paul now has more than 23 million subscribers on his YouTube channel, making him one of the platform’s biggest stars. So he had no trouble attracting enough people even to such a seemingly failed project.

After a while, blogger CoffeeZilla released a series of videos dedicated to CryptoZoo. In them, he made a pretty convincing argument for why the blockchain game is a scam. Here is one of those videos. We recommend watching the video, as investigations of this magnitude are not common in the cryptocurrency industry.


We watched the entire series of proceedings, and there really is a lot of interesting stuff in there. In particular, it turns out that one of the project's advisors, nicknamed Jake The Crypto King, secretly bought a large stock of token before the project launch and then leaked it without telling the other participants. Also ridiculous seems the involvement of developer Eduardo Ibanez, whose success story and merits turned out to be made up by himself. One can also think of a team of developers without salaries and their lead, who essentially took the project code hostage and demanded to receive a million dollars.

Thanks to CoffeZilla's analysis, it became clear that most of the project's representatives had managed to sell tokens and make money on them. Well, the users who pursued the HYIP were left with nothing beforehand. As some of them claimed, the losses amounted to tens of thousands of dollars.
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Paul initially reacted rather harshly to CoffeeZilla’s comments on Twitter, threatening it with legal action, but eventually it too faced a wave of criticism. In the end CryptoZoo was a complete failure, Logan clearly had no intention of pursuing it, and the investors who invested lost money. All this led to a lawsuit against Paul.

In addition to Logan himself, the list of defendants includes his assistant Danielle Strobel, manager Jeffrey Levin, the already mentioned CryptoZoo lead developer Eduardo Ibanez and one of CryptoZoo’s advisors Jake Greenbaum alias Crypto King. Most interestingly, the blogger has already started taking responsibility for compensating CryptoZoo investors for the losses incurred.

CoffeeZilla’s tweet announcing Logan Paul’s apology

Last week Logan posted a statement on Twitter and said that the affected investors of the blockchain game would receive a total of $1.3 million in compensation, although in fact they lost far more than that. Most importantly, the compensation only applies to people who invested in the project and did not get rid of the crypto-assets after the crash. Accordingly, if a person had sold tokens of a worthless project earlier, they cannot count on anything. Paul also separately apologised to CoffeeZilla for his comments.


We believe that Logan Paul deserves to be punished for his activism in the cryptocurrency industry. As CoffeeZilla proved in its videos, this is not Paul's first scam project created solely for his own enrichment. And with investors losing money on what's going on, the YouTube star's role in this is more than obvious. I want to believe that Logan will be held accountable for his actions, and the era of useless cryptocurrency will end.