A U.S. judge has advised that Logan Paul shouldn’t be allowed to escape a lawsuit by blaming his co-creators for the failure of his crypto project, CryptoZoo.
Judge Ronald Griffin in Texas said Paul’s request to get a default judgment against the other two co-founders, Eduardo Ibanez and Jake Greenbaum, should be rejected. Paul wanted the court to rule against them without a full trial because they haven’t responded to the lawsuit.
But the judge warned that doing so could lead to confusing or unfair results, especially since all three were sued together.
The lawsuit was filed in early 2023 by buyers of CryptoZoo NFTs. They claim the project was a fraud. The buyers also say they were promised special features that never came.
Logan Paul later filed his own complaint in January 2024, saying Ibanez and Greenbaum tricked him and were to blame for the project’s failure.
CryptoZoo was supposed to be a game where players buy NFT “eggs,” hatch animals, and breed them to earn crypto tokens. But the game never fully launched, and many users lost money.
Judge Griffin emphasized that Paul “has not demonstrated, nor is the Court convinced, that, based on the nature of his claims, there exists any reduced risk of inconsistent judgments.” He added that ruling on Paul’s motion now would be premature and could unfairly impact the broader fraud case brought by CryptoZoo NFT holders.
Another One to Blame
In June 2024, Paul filed a separate lawsuit against YouTuber Stephen Findeisen, also known as “Coffeezilla,” accusing him of defaming the CryptoZoo project through a series of investigative videos.
Back in January 2023, Paul pledged to fix the fallout from CryptoZoo and, a year later, set aside $2.3 million to refund buyers on the condition they agreed not to pursue legal action. He offered refunds of 0.1 Ether (ETH), matching the original sale price of the CryptoZoo tokens in 2021.