Logan Paul is seeking to distance himself from the failed CryptoZoo project by blaming his former partners in a lawsuit that accuses the YouTuber and others of orchestrating a multi-million dollar crypto scam, according to Bloomberg.
Logan Paul argues in court that Eduardo Ibanez and Jake “Crypto King” Greenbaum both key figures in the original CryptoZoo team are the real culprits behind the project’s collapse. Paul claims he was misled and sabotaged by them, and is now pursuing legal action against both.
According to court filings, Ibanez and Greenbaum allegedly abandoned the project while secretly exploiting it for personal gain. Paul says they sold large amounts of CryptoZoo tokens before the platform was officially launched, which directly contributed to its failure.
Although neither Ibanez nor Greenbaum has responded to the lawsuit, a Texas magistrate judge declined to issue a default judgment against them. The judge found the current evidence insufficient and ruled that it is too early to assign liability. Additionally, the court recommended dismissing Paul’s assistant, Danielle Strobel, from the case due to lack of personal jurisdiction.
The CryptoZoo project was initially promoted as a blockchain-based NFT game with “play-to-earn” mechanics. Endorsed heavily by Logan Paul on social media in 2021 and 2022, the platform attracted thousands of retail investors. However, it never delivered a functional product. Many investors claim they were victims of a classic rug pull, losing thousands of dollars after the project’s sudden abandonment.
In early 2024, Logan Paul launched a $1.5 million NFT buyback program, offering refunds to investors on the condition that they waive their right to sue.
The ongoing legal battle could become a turning point in how courts treat influencer liability in Web3. If judges decide that celebrities who promote crypto projects are financially and legally responsible for failures, it may reshape the entire landscape of crypto marketing and investor protection.
Whether Logan Paul successfully shifts the blame or is ultimately held accountable remains to be seen.
Sources: Bloomberg, Bloomberg Law, Decrypt, CoinTelegraph
