Texas Judge Backs Logan Paul in CryptoZoo Lawsuit Battle

A Texas magistrate judge recommended dismissing Logan Paul’s role in the ongoing CryptoZoo lawsuit.

The case stems from a failed NFT project that buyers claimed caused financial losses.

Magistrate Judge Ronald Griffin told an Austin federal court on Thursday that the class group had not provided enough evidence to tie Paul directly to their claims.

The lawsuit, filed in February 2023, accused Paul and others of running a “rug pull” through CryptoZoo NFTs.

Griffin stated that unless the plaintiffs update their filing, the court should allow Paul’s request to dismiss the case.

Commodity Pool Fraud Claim Against Logan Paul Dropped

Judge Griffin issued a 75-page report rejecting a commodity pool fraud claim brought against Logan Paul. The claim was one of 27 filed in the lawsuit.

The plaintiffs argued that CryptoZoo NFTs functioned as an option contract. They said the NFTs, sold as “eggs” that later “hatch” into animals, represented a contract for future delivery.

Griffin dismissed the argument, writing:

“The mental gymnastics required to come to this conclusion are truly dizzying. Plaintiffs do not explain—nor can the Court understand—how their purchases of CZ NFTs create option contracts or contracts for future delivery.”

The judge ruled that this claim would be permanently dismissed and could not be refiled.

Logan Paul Still Faces Other CryptoZoo Lawsuit Claims

The remaining 26 claims in the CryptoZoo lawsuit include allegations of fraud , negligence, unjust enrichment, breach of contract, conspiracy, aiding fraud, and consumer law violations in multiple states.

Judge Griffin noted that the class complaint often referred to “Defendants” without identifying actions by Paul himself. He said some claims lacked details and presented “fragments of facts” without clear links.

Although these claims were considered weak, Griffin said the plaintiffs could amend them and resubmit the case.

Co-Founders and Refund Program in CryptoZoo Case

The CryptoZoo lawsuit also names Eduardo Ibanez and Jake Greenbaum as co-founders. Plaintiffs accuse them and Paul of misleading buyers with promises of perks that never arrived.

In January 2024, Paul alleged that Ibanez and Greenbaum deceived him and caused the collapse of the project.

Earlier, in July 2024, Judge Griffin urged the court not to dismiss Paul’s counterclaims against them.

Paul also announced a refund program in January 2023. He pledged $2.3 million for refunds to CryptoZoo NFT buyers.

Claimants who joined the refund received 0.1 Ether (ETH) per NFT, the same price paid in 2021, in exchange for agreeing not to sue.

The CryptoZoo lawsuit remains active in federal court. The judge’s recommendation gives the plaintiffs a chance to amend most claims, while Paul’s dismissal request gained significant ground.