Logan Paul's Defamation Lawsuit Against Coffeezilla Proceeds

Influencer Logan Paul has been given the green light to continue his lawsuit against YouTuber Stephen Findeisen, known as "Coffeezilla," over allegations of defamatory remarks regarding Paul's failed CryptoZoo project. Magistrate Judge Henry Bemporad, in a report filed in a San Antonio federal court, recommended that the case should not be dismissed. Bemporad stated that Paul had sufficiently alleged that Findeisen's statements were defamatory and not merely opinions, thereby allowing the lawsuit to proceed.

The lawsuit, initiated by Paul in June, revolves around Findeisen's claims that Paul is a "serial scammer" and that CryptoZoo was a "scam" and a "massive con." Paul has vehemently denied these allegations, asserting that Findeisen's statements have caused significant reputational damage. Findeisen had sought an early judgment, arguing that his statements were opinions and that his videos included disclaimers. However, Bemporad found that the disclaimers were not prominent and did not alter the factual nature of Findeisen's assertions.

CryptoZoo was envisioned as a blockchain game where players could purchase NFT "eggs" that would hatch into unique animals, which could then be bred to create even more unique animals and earn tokens based on their rarity. Despite the ambitious concept, the game has yet to materialize, leading to widespread criticism and legal disputes. Findeisen had released three videos in 2022 about CryptoZoo, which Paul initially threatened to sue over but later backtracked and apologized. In January 2023, Paul announced a plan to refund $2.3 million to claimants, provided they agreed not to sue over the project.

However, a group of CryptoZoo buyers has filed a class-action lawsuit against Paul and others involved in the business, which Paul has sought to have dismissed. Additionally, Paul has filed a counter-suit against two business partners, blaming them for CryptoZoo's failure. The ruling by Judge Bemporad allows Paul's lawsuit to proceed, setting the stage for a potential legal battle over the defamatory remarks. Both Paul and Findeisen have the option to object to Bemporad's report within 14 days. The outcome of this case could have significant implications for the cryptocurrency and influencer communities, as it addresses the boundaries between opinion and defamation in the digital age.