Logan Paul Moves Closer to Escaping CryptoZoo Lawsuit — Judge Calls Claims “Dizzying Mental Gymnastics”

[nihalsari]

The CryptoZoo saga took another twist this week. A Texas magistrate judge has recommended dismissing most claims in the class-action lawsuit against YouTuber Logan Paul over his failed NFT project.

What Happened?

Magistrate Judge Ronald Griffin advised that Paul’s bid to toss the lawsuit should be granted.

The class group (CryptoZoo buyers) sued Paul back in 2023, calling the project a rug pull that promised perks which never came.

However, the judge said plaintiffs should get a chance to amend 26 of their 27 claims — but one claim, alleging commodity pool fraud, is permanently dead.

The Judge’s Take

On the commodity pool fraud angle, Griffin didn’t hold back:

“The mental gymnastics required to come to this conclusion are truly dizzying.”

Basically, plaintiffs argued that CryptoZoo NFTs (which start as “eggs” that hatch into animals and can breed hybrids) somehow created option contracts. The judge flat-out rejected that logic.

Why Paul Might Skate

Griffin noted the lawsuit fails to directly connect Paul to the alleged fraud and losses. Many accusations were described as fragments of facts vaguely tied to “Defendants.”

Unless the class group can clean up their arguments and tie Paul directly, the case could get tossed by the federal judge.

The Refund Angle

Paul previously promised to set aside $2.3M for refunds. Buyers who opted in got 0.1 ETH, the original mint price of the NFTs. The catch? They had to agree not to sue.

TL;DR

Most claims: weak, but plaintiffs get a “do-over.”

Commodity pool fraud claim: permanently gone.

Logan Paul? Closer than ever to walking away from the mess.

Forum Question:
Do you think Logan Paul genuinely dodged accountability here, or did the plaintiffs just overreach with a weak legal strategy?

[Nahid10]

Honestly, this feels less like Logan Paul proving innocence and more like the plaintiffs fumbling the case. The judge basically said the fraud claims weren’t tied directly enough to him — that’s a legal strategy issue, not a free pass. The commodity pool angle was always a stretch (NFT “eggs” as options contracts? Come on). If the class-action lawyers had built a cleaner argument around misrepresentation and failed promises, Paul might be in hotter water. Instead, he’s skating because the case is sloppy, not because CryptoZoo wasn’t shady.

[jacson4]

The refund program complicates things too. Logan setting aside $2.3M to quietly repay people at mint price (while requiring them not to sue) was a smart move for him legally, but a lot of holders lost way more than 0.1 ETH in secondary markets. That gap is where accountability feels missing. He’s likely to walk on the legal side, but reputationally, CryptoZoo will always stick to his name. Whether you call that “dodging” or just “playing the system” depends on how much faith you have in U.S. class-action law.