Logan Paul Shouldn’t Battle CryptoZoo Suit, Court Recommends

Logan Paul shouldn’t face CryptoZoo Inc. customers’ current complaint alleging he lured them into a fraudulent investment scheme, a magistrate judge said.

The plaintiffs failed to provide evidence of Paul’s enrichment as a result of the flopped venture, Magistrate Judge Ronald C. Griffin said last week. But Griffin recommended that they be able to replead most of their claims in the US District Court for the Western District of Texas.

The customers adequately pleaded the tokens were securities, according to Griffin, but didn’t meet the pleading requirements of their common law or federal securities fraud claims.

Investors sued the founders of Paul’s CryptoZoo, which they alleged was a fraudulent investment scheme to sell worthless tokens posing as a pending game company. Paul said in 2024 that the game, originally announced in 2021, would never come to be due to regulatory hurdles. Refunds were promised at the time.

Griffin previously recommended Paul’s assistant escape the suit and that the influencer not be granted default judgment against two co-creators.

Paul’s legal team said in an email they’re pleased with the report and would continue litigating until his name’s cleared. “As Logan has maintained from the outset, CryptoZoo was derailed by others who did not have the project’s best interests at heart, and he was devastated that it did not come to fruition as he envisioned it.” Neiman Mays Floch & Almeida and Kozyak Tropin & Throckmorton LLP represent Paul.

“We will be filing an amended complaint to address the issues identified in the court’s recent order and to further clarify our claims,” Texas-based attorney Tom Kherkher said in an email. He and Ellzey & Associates PLLC represent the purchasers.

The case is Holland v. CryptoZoo, Inc., W.D. Tex., No. 1:23-cv-00110, report and recommendations docketed 8/15/25.