Logan Paul backflips on defamation lawsuit against Coffeezilla, apologizes
YouTuber Logan Paul, the face of the CryptoZoo NFT project, has reportedly dropped his plans to file a lawsuit against Coffeezilla.

YouTuber Logan Paul has deleted a video in which he threatened to sue internet detective Stephen “Coffeezilla” Findeisen over a three-part series that painted Paul’s CryptoZoo project as a “scam.”

According to Coffezilla in a Jan. 6 tweet, Paul has promised to drop his threats of filing a defamation lawsuit over the videos.

Sharing a screenshot from the CryptoZoo Discord server, Findeisen also showed a message from Paul confirming he had deleted his initial response to Coffeezilla’s video series and apologized. It read:

“It was rash and misaligned with the trust issue at hand, so I called him today and apologized.”

“The war is not with Coffee. In fact, I’m grateful he brought this to light. I will be taking accountability, apologizing, and coming forward with a plan in the near future,” Paul added.

At the time of writing, Paul’s Jan. 3 response video to Coffeezilla’s accusations has been removed from YouTube. The tweet pointing to the video is still up, as is his initial Dec. 23 post calling the allegations “Not true.”

The two YouTubers began a war of words after Coffeezilla launched the first of a three-part video series on Dec. 17 accusing CryptoZoo of numerous business malpractices while also calling out Paul, the face of the project.

In his now-deleted response video to Coffeezilla, Paul accused Coffeezilla of defamation, adding “I’ll see you in court.”

Coffeezilla mentioned in his post that Paul is possibly “making a 3rd response," but at the time of writing neither Paul nor Coffeezilla has shed any further light on the matter.

Cointelegraph reached out to both Paul and Coffeezilla for comment but did not receive a response before publication.

_____

FTX spent $40M on food, flights, and hotels in just 9 months: Court filings
FTX’s Bahamian office spent around $40 million on hotels, catering and flights between January and September, according to court documents.

FTX’s Bahamian company spent a staggering amount of money on luxury hotels and accommodation, flights and food in the nine months before the exchange’s collapse, court filings have revealed.

According to bankruptcy court documents reviewed by Business Insider, FTX Digital Markets went through $40 million between last January and September, before filing for bankruptcy in November because of “liquidity issues.”

More than $15 million went on luxury hotels and accommodation, with $5.8 million of that at one resort — the Albany Hotel. This is the luxury resort is where Sam Bankman-Fried lived in his $30 million penthouse until his arrest, the report added.

Around $3.6 million went on the Grand Hyatt, a four-star hotel that hosted British royalty in March. There was also $800,000 spent at the five-star Rosewood resort.

Furthermore, almost $7 million was spent on meals and entertainment, with around half of that on catering services, according to the documents. Nearly $4 million was spent on flights and over $500,000 was spent on postage and delivery.

FTX even made a private deal with an air carrier to fly their Amazon orders from a Miami depot since the e-commerce giant didn’t deliver to the Bahamas, according to London’s Financial Times.

The FT added that the firm also provided Bahamas staff with a “full suite of cars and gas covered for all employees [and] unlimited, full expense covered trips to any office globally.”

In December, a former employee revealed the extent of the company’s excessive luxury expenditures, saying it was “cult-like.” “The entire operation was iconically and moronically inefficient,” she said at the time.

FTX also made numerous donations to local charities and organizations in the Bahamas.

There has been speculation that some of these donations may have to be returned as the Caribbean island nation tries to move on, according to a Jan. 8 report in local media.

Bankman-Fried entered a plea of not guilty to eight criminal charges in the U.S. District Court in the Southern District of New York on Jan. 3.

_____

Ferrari cuts ties with crypto sponsor ahead of 2023 Formula One season
On November 2022, Mercedes, too, bore a loss of $15 million after suspending its partnership with FTX as the crypto exchange filed for Chapter 11 bankruptcy.

Scuderia Ferrari, the racing division of luxury carmaker Ferrari, has joined the growing list of Formula One racing teams to end partnerships with their cryptocurrency sponsors. Ferrari exited its multi-year partnership deals with Velas Blockchain and chip manufacturing giant Snapdragon, resulting in a cumulative $55 million loss for the Italian team ahead of the 2023 season.

The Ferrari-Velas partnership from 2021 — set at $30 million a year — was aimed at increasing fan engagement through nonfungible tokens (NFTs) and other shared initiatives. However, the team was noncompliant with clauses that permitted Velas to create NFT images, according to RacingNews365.

In November, Mercedes, too, bore a loss of $15 million after suspending its partnership with FTX as the crypto exchange filed for Chapter 11 bankruptcy. Red Bull Racing’s partnership with th Tezos Foundation suffered a similar fate as the blockchain platform reportedly decided not to renew its agreement, citing strategy misalignment.

Toto Wolff, the team principal and CEO of the Mercedes-AMG Petronas F1 Team, warned that other teams could come across a similar situation. However, the relationship between F1 and the crypto ecosystem spans beyond partnerships. In October, Formula One filed ‘F1’ trademarks as it revealed plans to set up an online marketplace for cryptocurrency, meta tokens, digital collectibles, crypto-collectibles and NFTs.

Amid a bear market, Web3 projects have taken up the lead to strengthen engagement between fans and sports leagues.

Deloitte’s “2022 Sports Industry Outlook” report predicted an acceleration in the blending of real and digital worlds, along with growing markets for NFTs and immersive technologies. As Cointelegraph reported, the lack of easy-to-use platforms stands as the biggest challenge for mainstream adoption.

_____

This Daily Dose was brought to you by Cointelegraph.

Share this post