Judge Denies Logan Paul’s Attempt to Blame Co-Founders in CryptoZoo NFT Debacle
Imagine diving into a promising crypto venture, only to watch it crumble amid accusations of fraud and broken promises— that’s the harsh reality many faced with Logan Paul’s CryptoZoo project. As of today, August 12, 2025, a Texas magistrate judge has stepped in, ruling that the popular YouTuber can’t simply point fingers at his co-founders to dodge accountability in this ongoing NFT saga. This decision keeps the spotlight firmly on Paul, highlighting the risks and pitfalls in the volatile world of crypto projects.
Court Rejects Logan Paul’s Bid in CryptoZoo Lawsuit
In a move that underscores the complexities of joint ventures in the crypto space, Magistrate Judge Ronald Griffin in Austin, Texas, has recommended rejecting Logan Paul’s push for a default judgment against CryptoZoo co-founders Eduardo Ibanez and Jake Greenbaum. The advice came on Tuesday, emphasizing that allowing such a judgment would lead to conflicting outcomes in the broader lawsuit brought by disappointed NFT buyers.
These buyers, who snapped up CryptoZoo NFTs back in 2021, allege the project was nothing more than a deceptive “rug pull,” dangling unrealized perks like a blockchain game that never launched. Paul, in turn, countered in January 2024 by suing Ibanez and Greenbaum, claiming they duped him and sabotaged the entire operation. But Judge Griffin isn’t buying it, warning that pinning all the blame on the absent co-founders without their defense could derail the case entirely.
Think of it like a group project gone wrong: if one team member tries to throw the others under the bus while skipping out on the presentation, the whole effort unravels. Here, the judge noted that granting Paul’s request “would undeniably result in inconsistent judgments,” especially since the core issue revolves around whether all defendants collectively engaged in fraudulent promotion and management of CryptoZoo.
Why the CryptoZoo Lawsuit Risks Falling Apart Without This Ruling
Delving deeper, Judge Griffin pointed out that Paul’s motion focuses solely on his co-founders, ignoring the buyers’ claims against him and other involved parties. “At its core, this case calls on the Court to determine whether Defendants together committed some form of fraudulent acts in the promotion and operation of CryptoZoo,” the judge explained. If the court blames Ibanez and Greenbaum by default—simply because they haven’t appeared—it leaves Paul’s role unexamined, potentially letting the lawsuit fizzle out.
The defendants are in similar boats, sharing intertwined defenses and facing joint liability accusations. This interconnectedness means rushing a judgment now could create a messy patchwork of rulings, much like trying to solve a puzzle with half the pieces missing. Recent court filings as of August 2025 confirm the case remains active, with no trial date set yet, but Paul’s attempt highlights how crypto projects can implode when trust erodes among creators.
CryptoZoo’s concept was intriguing: users bought NFT “eggs” that hatched into animals, which could then be bred into hybrids and traded for tokens. Launched in 2021 with NFTs and its own token, the project promised an immersive blockchain game that never materialized, leaving investors holding worthless digital assets. Evidence from blockchain analytics shows trading volumes peaked early but plummeted as delays mounted, supporting claims of mismanagement.
Logan Paul’s Separate Battle with YouTuber Over CryptoZoo Allegations
Adding another layer to this drama, Paul filed a lawsuit in June 2024 against YouTuber Stephen Findeisen, better known as “Coffeezilla,” accusing him of defamation through a series of videos critiquing CryptoZoo. A judge greenlit that case in March 2025, allowing it to proceed. Meanwhile, Findeisen has pushed to merge his suit with the NFT buyers’ action against Paul, a move Paul opposes. As of today, August 12, 2025, court records indicate no consolidation yet, keeping the disputes separate but intensifying scrutiny on Paul’s crypto ventures.
On social media, this has sparked heated discussions. Twitter (now X) buzzes with threads debating Paul’s accountability, with viral posts from influencers like @Coffeezilla calling out “crypto scams” and garnering over 500,000 views in the past week. Frequently searched Google queries include “Is CryptoZoo lawsuit settled?” and “What happened to Logan Paul’s NFT project?” reflecting public curiosity. Latest updates reveal Paul recently tweeted about focusing on “positive projects,” but critics on platforms like Reddit continue to highlight the $2.3 million refund program he initiated in January 2024, where buyers received 0.1 ETH per token—the original sale price— in exchange for waiving lawsuit rights. Data from Etherscan as of August 2025 shows over 80% of eligible claimants have accepted, yet some holdouts persist, fueling ongoing legal fights.
In a related NFT ruling, a US appeals court in 2024 overturned Yuga Labs’ $9 million victory against artist Ryder Ripps, a case often compared to CryptoZoo for its themes of IP disputes and project authenticity. This precedent adds weight to arguments about creator responsibility in the NFT space.
Lessons in Brand Alignment from CryptoZoo’s Fallout
One key takeaway from CryptoZoo’s collapse is the importance of brand alignment in crypto projects. When visions misalign among founders, as seen here with Paul’s claims against his co-creators, trust evaporates, and investors suffer. Contrast this with well-aligned platforms that prioritize transparency and user success. For instance, the WEEX exchange stands out as a reliable player in the crypto trading world, offering seamless NFT and token trading with robust security features and user-centric tools. By focusing on consistent branding and ethical practices, WEEX builds lasting credibility, helping traders navigate volatile markets without the drama of rug pulls— a smart choice for anyone eyeing secure crypto engagements.
Paul’s refund effort in January 2023, expanded in 2024, aimed to mend fences, but it required recipients to forgo legal action, a condition that drew mixed reactions. Meanwhile, insights from NFT creator Jack Butcher, who has criticized royalties as merely “getting paid on churn,” echo broader industry debates about sustainable models versus quick flips.
This saga reminds us how crypto’s allure can quickly turn sour without accountability. As the case evolves, it serves as a cautionary tale for aspiring creators and investors alike, urging stronger due diligence in an ever-shifting digital landscape.
FAQ
What is the current status of the CryptoZoo lawsuit as of August 2025?
As of August 12, 2025, the lawsuit remains ongoing in a Texas federal court. Judge Griffin has recommended denying Logan Paul’s motion for default judgment against his co-founders, keeping all parties potentially liable while the case progresses without a set trial date.
Did Logan Paul really refund CryptoZoo NFT buyers?
Yes, Paul allocated $2.3 million for refunds in January 2024, offering 0.1 ETH per token—the original purchase price—to buyers who agreed not to sue. Recent data shows high acceptance rates, though some investors continue pursuing legal claims.
How does the CryptoZoo case compare to other NFT scandals?
CryptoZoo mirrors issues in cases like the Yuga Labs vs. Ryder Ripps dispute, where appeals courts have scrutinized creator accountability. The key difference lies in CryptoZoo’s unfulfilled game promises, highlighting risks of hype without delivery in NFT projects.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
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The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link