Magistrate Judge Ronald Griffin, in Austin, Texas, urged the federal court to reject American influencer and professional wrestler Logan Paul’s motion for a default judgment against CryptoZoo co‑creators Eduardo Ibanez and Jake Greenbaum. Paul argued they should bear full responsibility for the blockchain game project’s failure. Through Griffin warned that doing so would risk inconsistent rulings.
The case began in early 2023 when a group of CryptoZoo NFT buyers sued Paul, Ibanez, Greenbaum, and others. They alleged the project constituted a fraudulent “rug pull” and failed to deliver promised benefits. Paul counter‑claimed in January 2024, accusing his co‑founders of deceiving him and causing CryptoZoo’s collapse.
Judge Griffin stressed that all defendants in the case share related defences. He said that isolating Ibanez and Greenbaum for default would undermine the plaintiffs’ broader claims against Paul and other parties. “Defendants are similarly situated and possess closely related defences,” he stated. If the motion were granted, it could weaken the entire lawsuit, leaving plaintiffs’ claims against Paul unresolved.
At its core, the case is about whether the defendants acted collectively in promoting and managing CryptoZoo. Donald Holland, a lead plaintiff, maintains that buyers paid for NFT “eggs” tied to a game that never launched.
CryptoZoo was introduced in 2021. Users bought NFTs and tokens with the promise of playing a blockchain game that was never built. Critics accused the project’s founders of orchestrating a misleading scheme. Paul initially offered a refund plan in January 2023. He set aside $2.3 million to compensate buyers with 0.1 Ether, equivalent to the original price, on condition that they agreed not to sue.
Aside from this lawsuit, Paul is involved in a defamation case against YouTuber Stephen Findeisen, known as “Coffeezilla.” Paul sued him in June 2024 over statements made in videos about CryptoZoo. In March 2025, a judge allowed that case to move forward. Findeisen has asked to consolidate it with the CryptoZoo class action, a move Paul opposes.
Magistrate Griffin’s recommendation makes clear that Paul’s attempt to shift responsibility is premature. If adopted by the court, it would require all parties to continue through full litigation rather than isolating blame without trial. The final ruling will determine whether liability is shared or assigned to specific individuals.
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