Michaela
Internet personality and entrepreneur Logan Paul has been dismissed from a class action lawsuit alleging that his crypto project, CryptoZoo, defrauded investors after failing to launch as promised.
Key points:
- A U.S. District Court judge dismissed all 27 claims in the class action lawsuit against Logan Paul over his failed crypto project, CryptoZoo.
- Paul’s attorney said the court found no evidence his statements were “misleading or fraudulent,” clearing him of direct responsibility for investors’ losses.
- The ruling sparked backlash across the crypto community, with critics arguing it highlights flaws in how legal systems handle accountability in digital asset projects.
U.S. District Judge Alan Albright of the Western District of Texas in Waco granted Logan Paul’s motion to dismiss the case in its entirety. “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 in his ruling.
Judge Albright determined that the plaintiffs did not establish a direct connection between Paul and their alleged financial losses. Paul’s attorney, Jeff Neiman, told entertainment outlet TMZ that the “district judge reaffirmed that ruling, holding once again that no reasonable juror could find Logan’s statements misleading or fraudulent.”
In 2021, Logan Paul unveiled plans for CryptoZoo, a blockchain-based game that allowed users to purchase and hatch “egg NFTs,” each revealing a collectible animal. Marketed as a “game that earns you money,” the project soon faced technical and operational setbacks that prevented it from launching successfully, ultimately resulting in a lawsuit from disgruntled investors.
Following widespread backlash over the failed CryptoZoo project, Paul filed a lawsuit against former business partners Eduardo Ibanez and Jake Greenbaum, alleging they were responsible for many of the problems that derailed the game’s launch. Paul maintained that he personally lost money on the venture and never profited from it. In 2024, he pledged to compensate affected users through a buyback program aimed at refunding those who were scammed.
The court’s decision to dismiss the case has drawn widespread backlash online. Blockchain investigator ZachXBT publicly criticized the ruling, asserting that Logan Paul should still be held accountable for his involvement in the failed CryptoZoo project.
“Sad how antiquated laws allow bad actors to continually abuse inefficiencies within crypto from different jurisdictions,” the blockchain investigator wrote in an X post. “If you promote a project tied to the value of tokens and little to nothing is delivered thus leading to serious financial harm you should be held accountable,” he added.
Many within the online crypto community have voiced concern that the court’s decision could set a troubling precedent, suggesting that financial status may shield influential figures from accountability.
As debate around the ruling continues to unfold, the case has reignited broader questions about regulation, responsibility, and fairness in the evolving world of crypto ventures. Whether this outcome marks a step backward for accountability or a reaffirmation of legal limits remains a point of sharp division across the digital landscape.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
