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What were the charges against Logan Paul? Details explored as judge dismisses ‘CryptoZoo’ legal case

Judge dismisses Logan Paul’s CryptoZoo lawsuit, ending fraud claims over the failed NFT project
  • Judge dismisses CryptoZoo lawsuit against Logan Paul (Photo by John Nacion/Getty Images)
    Judge dismisses CryptoZoo lawsuit against Logan Paul (Photo by John Nacion/Getty Images)

    Logan Paul dealt with a class action lawsuit over his 2021 NFT project, CryptoZoo, with claims accusing him of tricking investors and pulling off a “rug pull.” Several investors filed the lawsuit, saying Paul and his team advertised the project as a game to earn money through breeding digital animals with NFTs.

    Yet, the project failed to meet expectations, causing buyers to lose money.

    The lawsuit stated that Logan Paul and his team made money from hyping the project but then left it unfinished, which led to losses for investors.

    The claims resulted in accusations of fraud and false representation.


    Court dismisses CryptoZoo class action lawsuit against Logan Paul

    A federal district judge has confirmed dismissing the case, agreeing with the earlier conclusion by a magistrate judge.

    They determined the plaintiffs couldn’t prove a direct link between Paul’s actions and their supposed financial losses.

    The court decided, “no reasonable juror could find Logan’s statements misleading or fraudulent.”

    Paul’s attorney, Jeff Neiman, told TMZ,

    “The district judge reaffirmed that ruling, holding once again that no reasonable juror could find Logan’s statements misleading or fraudulent.” He added, “On the day Logan walked down the aisle, a magistrate judge delivered the perfect wedding gift: total dismissal of the CryptoZoo class action.”

    The decision ends the court case involving the YouTuber and WWE celebrity. It brings an end to the dispute tied to the unsuccessful CryptoZoo NFT project.


    Logan Paul’s CryptoZoo controversy and investor backlash

    Logan Paul co-founded CryptoZoo in 2021 and marketed it as a blockchain game where people could make money by breeding virtual animals shown as NFTs.

    The idea grabbed attention fast and pulled in millions in investments. Paul described it as a “fun game that makes you money.” But the project failed to launch as planned.

    Disappointed investors claimed Paul and his team gave false information about how the project was doing and its potential to make profits.

    After it fell apart, lawsuits accused them of fraud and misrepresentation.

    Amid growing criticism, Paul found himself caught in more controversy when YouTuber Coffeezilla, also known as Stephen Findeisen, put out a viral docuseries in 2022 about CryptoZoo, calling it a "scam."

    Paul first reacted by defending himself, but later apologized on X, admitting his errors.

    At the start of 2024, he shared plans to give refunds to some CryptoZoo NFT buyers if they agreed not to take legal action against him.

    This situation became a warning about influencer-backed crypto ventures and highlighted why being open and honest in digital investments matters.

    TOPICS: Logan Paul