Quick Takeaways
- Logan Paul tried to shift blame to his co-founders the judge said no.
- Investors claim the CryptoZoo project was a classic crypto “rug pull.”
- Refunds didn’t stop the lawsuits, and things are only heating up.
Judge Blocks Logan Paul’s Bid to Blame CryptoZoo Team
Things aren’t looking great for Logan Paul right now. A Texas judge just shut down his attempt to push the blame for his failed CryptoZoo project onto his co-founders.
This means Paul is still on the hook as the legal battle continues with angry investors who feel they got scammed.
Logan Paul’s Blame Game Rejected by Federal Judge
When Logan Paul filed a motion for a default judgment against CryptoZoo co-founders Eduardo Ibanez and Jake Greenbaum, he likely thought it was a smart move. His claim?
That they conned him and were the real reason the project flopped. But the judge didn’t buy it.
Magistrate Judge Ronald Griffin said that letting Paul walk away while laying all the blame on co-founders who haven’t even responded in court would just create confusion and inconsistent judgments.
In short, the court wants everyone to face the same scrutiny.
Judge Griffin observed, “It would undoubtedly lead to inconsistent judgments to rule on Paul’s motion at this time.”
So now, Logan Paul remains right in the center of the lawsuit along with the others involved.
Logan Paul Still in Hot Water with CryptoZoo Investors
If you missed it, CryptoZoo launched in 2021 and promised to be the next big thing in crypto gaming.
Buyers got NFTs and tokens with the expectation of a fun, blockchain-powered game. But that game? It never came.
Consequently, in early 2023, irate customers filed lawsuits against Logan Paul, Ibanez, Greenbaum, and a few others.
They called the project a “rug pull” a term for when developers promise the moon, take the money, then vanish.
Paul fired back in January 2024 with a counterclaim saying he was also a victim.
But the judge wasn’t convinced that this gave him a free pass.
Meanwhile, Logan Paul Is Also Suing Coffeezilla
If that wasn’t enough, Logan Paul is fighting another legal battle this time with popular YouTuber Coffeezilla (real name Stephen Findeisen).
Coffeezilla posted viral videos accusing Paul of running a crypto scam with CryptoZoo.
In June 2024, Paul filed a defamation lawsuit, saying those videos were false and hurt his reputation.
A judge is letting the case move forward, but Coffeezilla is now asking the court to merge his case with the investor lawsuit which, unsurprisingly, Paul wants to avoid. Catch more details about that case on Reuters.
Logan Paul’s refund plan did not control much loss
To calm things, Logan Paul announced in early 2024 that he would separate $ 2.3 million to return investors.
He offered 0.1 ETH the same price people paid when the tokens first launched in 2021 but there was a catch: you had to agree not to sue him.
Some buyers took the offer. Many didn’t. They felt the refund wasn’t enough to cover what they lost or what was promised.
After all, they were expecting an entire game and ecosystem not just their money back.
You can check out the refund details on Logan Paul’s site.
So, What Does This Mean for Logan Paul and Other Celebs in Crypto?
This case is a wake-up call not just for Logan Paul, but for every celebrity dabbling in crypto.
Being famous doesn’t protect you from responsibility, especially when you promote a project that doesn’t deliver.
The judge made it clear: all the people involved in CryptoZoo including Paul must be held accountable if fraud really did take place.
Shifting blame, dodging court, or offering refunds after the fact won’t necessarily help.
Final Thoughts
No matter how you look at it, Logan Paul is in deep with this CryptoZoo mess.
His attempt to pin it on others didn’t work, and now he’ll have to face the legal music just like everyone else involved.
This case will likely set the tone for how future celebrity-backed crypto projects are handled in court. And for investors? It’s a reminder to always look beyond the hype.