Judge Denies Logan Paul’s Bid to Shift Liability in CryptoZoo NFT Lawsuit

Magistrate Judge Ronald Griffin in Austin, Texas, has recommended denying Logan Paul's motion for default judgment against CryptoZoo co-founders Eduardo Ibanez and Jake Greenbaum. The influencer sought to pin the failed blockchain game project's collapse solely on his former partners.

The lawsuit, initiated in 2023 by disgruntled NFT buyers, alleges CryptoZoo operated as a fraudulent "rug pull" that never delivered its promised gaming ecosystem. Paul countersued in January 2024, claiming his co-creators deceived him about the project's viability.

Judge Griffin warned that isolating Ibanez and Greenbaum could fracture the case's coherence, noting all defendants share interrelated defenses. The ruling preserves plaintiffs' ability to pursue claims against all parties collectively for their roles in promoting the ill-fated 2021 NFT project.

At issue are unfulfilled promises surrounding CryptoZoo's NFT "eggs," which buyers purchased anticipating game integration that never materialized. The decision underscores growing legal scrutiny of celebrity-backed crypto ventures that fail to deliver utility.