Logan Paul’s Cryptozoo Verdict: Where His $2.3 Million Promise to Fans Really Stands

Logan Paul just walked away from the CryptoZoo class action without a scratch. A judge reaffirmed the August dismissal, which means the investor lawsuit is still dead and Paul doesn't have to answer for the failed NFT game in that courtroom. If you've lost track of this saga (honestly, same), here's where we're at and how we got here.

The ruling (and why the case fizzled)

Investors accused the YouTuber-turned-WWE star of defrauding them with CryptoZoo, his 2021 NFT project where users were supposed to breed virtual animals and make money. A magistrate judge tossed the case earlier, saying the plaintiffs couldn't directly tie their losses to Paul. Now a district judge has agreed, reaffirming that dismissal.

"No reasonable juror could find Logan's statements misleading or fraudulent."

That's from Paul's attorney, Jeff Neiman, celebrating the latest ruling. Bottom line: that chapter, at least, is closed.

What CryptoZoo was supposed to be (and what actually happened)

Back in 2021, Paul launched CryptoZoo as a play-to-earn game: buy NFTs, hatch eggs, breed animals, and theoretically profit. Fans say they poured thousands into the project. Critics say it rug-pulled. Paul has denied misleading anyone or abandoning the game.

About that buyback promise

In January 2023, Paul apologized for the whole mess and said he'd make it right. He claimed he spent roughly $1 million trying to build CryptoZoo and hadn't made a penny from it. A year later, in January 2024, he announced a buyback program for Base Egg and Base Animal NFTs at their original purchase price, with claims handled through a website he shared in his post. He emphasized it wasn't a refund, just him personally putting up more than $2.3 million to clean up the fallout.

"I never made a single penny from the project, period... I was highly disappointed that the game was not delivered."

Here's where the fine print got messy: community notes flagged that participating in the buyback meant giving up the right to sue for damages, and the terms said any NFTs Paul deemed ineligible wouldn't be returned. That did not go over well with a lot of buyers. As for how far the buyback progressed or how many people actually got paid out, there hasn't been a clear public update since the announcement.

Paul's counterpunch: suing the people he blames

Paul also went on offense. He filed a lawsuit against two CryptoZoo developers, Eduardo Ibanez and Jake Greenbaum, accusing them of lying about their resumes, knowledge, experience, and intentions. He says an exhaustive review traced 'nefarious trading activity' happening behind the team's backs, with the aim of defrauding everyone involved.

On top of that, Paul filed a defamation suit against Stephen Findeisen (aka Coffeezilla), the YouTuber whose three-part series framed CryptoZoo as a multi-million-dollar scam. Critics argue these legal moves are meant to bleed detractors dry; Paul's side says he's just holding the right people accountable. Pick your fighter.

The quick timeline

• 2021: Paul launches CryptoZoo as a play-to-earn NFT game about breeding virtual animals.
• January 2023: After mounting backlash, Paul apologizes and says he'll make things right; claims he spent about $1 million and didn't profit.
• August (year not restated in the ruling): Magistrate judge dismisses the class action, saying investors couldn't link losses directly to Paul.
• January 4, 2024: Paul announces a buyback program for Base Egg and Base Animal NFTs, personally committing over $2.3 million; says it's not a refund.
• After the announcement: Community notes flag waiver-of-lawsuit language and non-return of ineligible NFTs; fan backlash continues.
• Now: A district judge reaffirms the August dismissal. Paul's attorney says a jury couldn't find his statements misleading or fraudulent.

So where does that leave things? The class action is still dismissed. The buyback exists on paper with some controversial strings. And Paul is pushing his own lawsuits while wrestling on TV and building an empire elsewhere. Not exactly closure, but for Logan Paul, it's a clean legal win on the biggest case with plenty of unresolved drama still circling the project.