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YouTuber and influencer Logan Paul has scored a legal win in his defamation lawsuit against Stephen Findeisen, better known as Coffeezilla, over statements made about Paul’s failed CryptoZoo NFT project.
On March 26, Magistrate Judge Henry Bemporad recommended that the San Antonio federal court reject Coffeezilla’s motion to dismiss the case, finding that Findeisen’s statements could be considered defamatory rather than mere opinions.
Judge Backs Paul’s Defamation Claims
The lawsuit, filed in June 2023, alleges that Coffeezilla X posts and YouTube videos labeled Paul a “serial scammer” and characterized CryptoZoo as a “scam” and a “massive con.” Paul contends that these claims caused significant reputational damage.
In his ruling, Judge Bemporad wrote that Paul had adequately demonstrated that the statements in question were “reasonably capable of defamatory meaning” and could not simply be dismissed as opinions.
The judge also criticized disclaimers by Coffeezilla, which were only visible in the expanded video description section, noting that they were not popular enough to shield Findeisen from defamation claims.
CryptoZoo Fallout Fuels Legal Battles
Paul’s CryptoZoo project, launched with much fanfare, was promoted as a blockchain-based game where players could purchase NFT eggs, hatch them into animals, and breed them to create rarer species. The project promised players the chance to earn tokens based on the rarity of their creatures. However, the game never materialized, leaving investors empty-handed.
In 2022, Coffeezilla released three exposé videos accusing Paul of running a scam, though Paul did not sue over those. However, the influencer threatened legal action at the time, later backtracking and apologizing in January 2023. He eventually pledged $2.3 million for refunds, offering compensation to affected investors on the condition that they waive their right to sue.
Meanwhile, Paul is also facing a class-action lawsuit from a group of CryptoZoo buyers who claim they were defrauded.
Both Paul and Findeisen have 14 days to file objections to Judge Bemporad’s report. If upheld by Judge Orlando Garcia, the ruling would allow Paul’s defamation lawsuit to move forward.
