As backlash intensifies, Logan Paul apologizes for disaster-ridden crypto venture. Here's how we got here, and what's next.

• Logan Paul first came out swinging against a much-viewed docuseries chronicling his crypto project CryptoZoo.
• He's since made a stunning aboutface, claiming he's grateful the issues were brought to light and vowing to "make this right."

Logan Paul's beleagured NFT venture CryptoZoo has been making headlines in recent weeks — despite being more than a year old. Paul launched the cryptocurrency collectible project in 2021, calling it a "really fun game that makes you money." But now, the podcast host and sometimes-boxer's credibility has come into question.

The drama began when YouTube investigator Stephen 'Coffeezilla' Findeisen released a series in December calling CryptoZoo Paul's "biggest scam."

Paul threatened to sue Findeisen for defamation in a since-deleted response video.

But on Saturday, Findeisen tweeted that Paul had called him to concede he was "dropping the lawsuit threats." And in a screenshot from the CryptoZoo Discord group shared by Findeisen, Paul said his initial response to the investigation was "rash and misaligned with the true issue at hand."

"I'm grateful he brought this to light," Paul wrote — a stark contrast to his initial characterization of Findeisen as "slimy as fuck." On Discord, Paul continued: "I will be taking accountability, apologizing, and coming forward with a plan in the future…I know it's been bumpy, but your support is everything to me and I will make this right."

When reached, Findeisen was clear about what he thinks it takes to make this right: Paul to refund those who bought in.

"The only acceptable outcome here is refunds for the victims," he told Insider. "This is not a matter of simply picking up the pieces 1.5 years later. People bought high, sold low, rightly assuming the project was abandoned, so it's not enough to those people to make things right by fixing the game. They need to be made whole."

Here's a timeline of how we got to this point.

What is CryptoZoo?

Paul's first mention of CryptoZoo came during an August 2021 episode of his "Impaulsive" podcast. "For the last six months, I've been working on my own NFT project," he said, noting the venture comprised "handmade art" and would be part of "a really fun game that makes you money."

While the official CryptoZoo website is currently "undergoing upgrades," a separate site created by the community explains that CryptoZoo comprised 10,000 "base eggs" that were made available for purchase on September 1, 2021. A month later, the eggs were to hatch into animal NFTs and would every day yield $ZOO — an in-game currency that could be exchanged for dollars.

As part of the game, two animal NFTs could also be bred into hybrids, with rarer hybrids being even more valuable.

Coffeezilla accuses Paul of selling shoddy NFTs

In a three-part series that was one year in the making and has garnered 18.2 million views to date, Findeisen said Paul appeared to have abandoned the unfinished NFT project shortly after launch, as so-called Zookeepers said they lost tens of thousands of dollars.

On launch day, $2.5 million worth of eggs were sold at around $300 each before anyone had even seen any images of the animal NFTs. When the NFTs were eventually released, Findeisen said, some observers remarked that they appeared not to be handmade art but instead "Adobe stock photos mashed together."

Furthermore, Findeisen said, some buyers also couldn't claim the yields from their NFTs or hatch their eggs.

The investigation also raises questions about "shady characters" and internal drama at the company

In a June 2022 Twitter Space, Paul provided an update on CryptoZoo, addressing the slew of "shady characters" within the crypto industry. CryptoZoo had been besieged, he said, after its lead developer — who he later revealed to be Zach Kelling — "took the code that he made, fled to Switzerland...and like held it hostage for $1 million."

Felling told Findeisen he'd withheld the code because he hadn't been paid. In a LinkedIn message posted on January 5, Kelling said his development team was "owed over $1 million," and that they'd "quit the project because Logan didn't pay us for our services rendered."

Findeisen's investigation also identifies two other figures involved in CryptoZoo: Eddie Ibanez and Jake 'The Crypto King' Greenbaum — both of whom Findeisen says sold their tokens, cashing out before the venture had properly launched.

Ibanez did not respond to Findeisen's allegations, but Greenbaum admitted to selling an undisclosed amount because he hadn't been fairly compensated for his work.

Paul fumes, then backtracks, vowing to "make this right"

Paul's initial YouTube response was scathing, alleging that Findeisen had only reached out to him for comment once, on Christmas Eve. He also claimed Findeisen had illegally recorded a phone call with his manager, Jeff Levin. "Your addiction to clicks has clouded your judgment," he railed in the now-deleted video.

In a subsequent episode of "Impaulsive," Paul also took issue with Findeisen's characterization of him as a scammer, arguing that he'd been unknowingly conned by bad actors and hadn't made any money on the venture despite having good intentions.

Paul said he'd been advised to stay silent while his team sought a solution to deliver the game, which was already in process long before the series had premiered.

Given CryptoZoo's rocky past and the shaky NFT market, it remains to be seen whether Paul will be able to make good on his promise to resurrect the venture — though it's worth noting that eggs are currently trading at $180 apiece. And additional installments of Findeisen's massively popular series could be underway, the investigative YouTuber told Insider.

"I will be responding to Logan's apology video when it happens, but until I know his plan of action, I don't know what I can share other than there were severe errors in his first two videos that I plan on correcting," he added.

Paul, Ibanez, and Greenbaum did not immediately respond to Insider's request for comment.