A Texas judge has cautioned against Logan Paul’s efforts to shift responsibility for the failed CryptoZoo NFT project exclusively onto co-founders during ongoing fraud litigation. Judge Griffin highlighted the risks of inconsistent rulings and premature accountability assignments, stressing the complexity of NFT fraud cases and the necessity for equitable evidentiary hearings for all implicated parties.
The lawsuit alleges CryptoZoo amounted to a “rug pull” operation where promised gameplay mechanics and token utilities never materialized. Paul’s counterclaims specifically accuse co-founders of deceiving him about the project’s operational capabilities. The court recommended denying Paul’s motion to assign sole responsibility to co-founders, ensuring key defendants remain in the litigation until thorough examination.
Parallel legal proceedings involve Paul suing YouTuber Coffeezilla for defamation regarding critical coverage of CryptoZoo, with potential case consolidation under consideration. Paul has independently initiated a $2.3 million refund program offering 0.1 Ether per NFT claimant, though this voluntary compensation does not constitute admission of liability and leaves core fraud allegations legally unresolved.
The judicial guidance underscores heightened scrutiny of accountability frameworks in NFT-related litigation as investors continue pursuing damages for unfulfilled project commitments.