Paul - whose channels have a combined 20 million followers - will also be booted off "Foursome", a web series in which he appeared previously.
Youtuber Logan Paul just had his money train put out of service after Youtube announced that they cut the popular vlogger's role revenue stream. YouTube has also removed Paul's channel from an elite Google Preferred ads program accessible to top creators.
Paul apologized in a YouTube video titled "So Sorry" last week for posting the video that showed him and his friends laughing about the body they filmed hanging on a tree in Japan's "suicide forest".
The video was widely seen, and many users were outraged. "Additionally, we will not feature Logan in season 4 of Foursome and his new Originals are on hold", Alphabet Inc's YouTube, said in a statement. "I still am", he said in a statement posted to Twitter.
If you followed the saga of PewDiePie previous year, this punishment might sound familiar: it's pretty similar to how YouTube handled the fallout from a Wall Street Journal report that highlighted the YouTube superstar's Nazi jokes.
"Our hearts go out to the family of the person featured in the video", it read. If a video is graphic, it can only remain on the site when supported by appropriate educational or documentary information and in some cases it will be age-gated. It wasn't in the on-the-record statement, but YouTube has since confirmed that it also issued a "strike" against Paul's channel for violating its community guidelines. Channels that receive three such strikes in a three-month period can be barred from the platform.
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Paul, known for his lighthearted and unfiltered touch, faced massive backlash for the video.
YouTube's second statement, released Tuesday, was the first from the platform that fully condemned the content in Paul's video.
"It's taken us a long time to respond, but we've been listening to everything you've been saying".
"We expect more of the creators who build their community on YouTube, as we're sure you do too". They also said they'd acted accordingly, when they did nothing of the sort though.
With Youtube being Paul's main source of income, the popular vlogger just lost out big time.