YouTube creator and entrepreneur Logan Paul has had all 27 claims in a class-action lawsuit dismissed by a federal court in the Western District of Texas. The legal action centered on his involvement in the failed NFT project CryptoZoo, which marketed itself as a game where users would purchase “egg NFTs” to hatch hybrid animals and earn income.
Legal grounds and court findings
According to the court’s ruling, the plaintiffs failed to present sufficient evidence directly linking Paul to the financial losses they claimed. Judge Alan Albright determined that “no reasonable juror could find Logan’s statements misleading or fraudulent,” and granted the motion to dismiss all claims.
“It is further ordered that Defendant Logan Paul’s Motion to Dismiss is hereby granted as to all counts and all 27 of Plaintiffs’ claims be dismissed,” Judge Albright wrote.
The original class-action complaint, filed in 2023, had alleged that Paul and the project team carried out a “rug pull” by failing to deliver on the promised game and proceeds.
Paul’s legal team also pointed to a refund programme initiated by Paul in early 2024, where buyers were offered a buy-back of purchased tokens in exchange for dropping future claims, an arrangement that the court cited as part of the context for dismissal.
Paul filed a lawsuit
later filed a separate lawsuit against two of his former business partners involved in the CryptoZoo project. He claimed they were responsible for many of the issues that affected the game’s launch.
Filed in a Texas court, the lawsuit names Eduardo Ibanez and Jake Greenbaum as defendants. Paul’s filing describes them as individuals who “misrepresented their résumés, knowledge, experience, and intentions,” and accuses them of fraud and deceit. The complaint also states that Paul did not earn any profit from the CryptoZoo venture.
Featured image courtesy: Logan Paul
