YouTuber Logan Paul’s attempt to dismiss a class-action lawsuit over his failed NFT project CryptoZoo may be granted, as a Texas judge ruled the group had not sufficiently linked Paul to their losses. The suit alleges a “rug pull” by promising unfulfilled perks. Judge Griffin recommended dropping most claims against Paul, including commodity pool fraud.
The lawsuit’s claim of commodity pool fraud was dismissed by Judge Griffin, who criticized the group’s reasoning. They argued CryptoZoo NFTs were option contracts due to their breeding and trading features. However, the judge found the argument lacking in logic. The lawsuit also failed to establish Paul’s direct benefit from CryptoZoo’s collapse.
Paul was sued by a group of CryptoZoo buyers, who alleged fraud and other charges. The lawsuit failed to connect Paul to most claims, lacking evidence of his involvement. Paul refunded buyers with 0.1 ETH, the original price of CryptoZoo NFTs. He set aside $2.3 million for refunds in January 2023, under the condition that claimants agreed not to sue.
Read more at cointelegraph.com: CryptoZoo Suit Fails to Tie Logan Paul to Collapse: Judge
