CryptoZoo Case Weakens as Judge Recommends Dropping Claims

Written by Aaron S.,

Editor-In-Chief

Last Updated: August 19, 2025

Key Takeaways

A Texas judge recommended dropping most claims against Logan Paul in the CryptoZoo NFT class-action suit;
The commodity fraud claim was dismissed after the court rejected arguments that CryptoZoo NFTs acted like option contracts;
The judge said the plaintiffs failed to show that Paul directly profited or caused CryptoZoo’s collapse.

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A federal judge in Texas has recommended dropping most of the class-action lawsuit against YouTuber Logan Paul over his non-fungible token (NFT) project, CryptoZoo.

Judge Ronald Griffin told the Austin court that the claims filed so far do not clearly show Paul’s direct role in the alleged losses.

The case was first filed in February 2023 by people who bought CryptoZoo tokens. They argued the project promised special features that never appeared and compared the situation to a "rug pull".

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The complaint listed 27 claims, but Griffin said only one, an accusation of commodity pool fraud, should be dismissed permanently.

The judge explained that the commodity fraud claim failed because of how the plaintiffs described the NFTs. They argued that the CryptoZoo "eggs", which hatch into animals that can be combined into hybrids, were similar to option contracts.

Griffin added that the court could not understand how buying these NFTs created contracts for future delivery.

Beyond that, Griffin said the lawsuit did not link Paul himself to the project’s collapse. The filing had not shown that Paul personally made money from CryptoZoo or played a direct role in the alleged misconduct.

Without that connection, the other claims, including fraud, negligence, breach of contract, unjust enrichment, and consumer law violations, could not hold up in their current form.

The report also criticized the way the complaint was written. Griffin noted that many parts only gave "fragments of facts" or simply referred to "Defendants" without explaining who did what.

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