Logan Paul has filed a defamation lawsuit against Stephen Findeisen, also known as “Coffeezilla” on YouTube. The lawsuit, submitted on June 27 in a San Antonio, Texas District Court, is a result of videos Findeisen created about Paul’s failed CryptoZoo non-fungible token (NFT) project in 2022.
The lawsuit claims that Findeisen “maliciously and repeatedly published false statements accusing Paul of operating a scam in connection with a troubled blockchain project called CryptoZoo.” Paul seeks to hold Findeisen accountable for his actions and the significant damage caused to his reputation through the intentional spread of defamatory falsehoods, as stated in the court filing.
Starting in late 2022, Coffeezilla released three YouTube videos labeling CryptoZoo as “Logan Paul’s biggest scam.” Findeisen accused Paul of defrauding his fans by withholding the funds of NFT holders without delivering the promised project. However, Paul claims that Findeisen intentionally omitted information that demonstrated Paul’s genuine commitment to CryptoZoo’s success.
The filing explains that Paul was deceived by several trusted advisers who ultimately turned out to be conmen. “Findeisen knew full well that Paul had never set out to scam anybody, but to the contrary had always intended to build a legitimate blockchain-based game.”
Paul attributes the project’s failures to Eduardo “Eddie” Ibanez, whom he describes as a charlatan who lied about his credentials, and Jake Greenbaum, an adviser who prioritized personal profit over creating a legitimate project.
Paul had initially considered legal action against Findeisen in 2022, but decided to focus on rectifying the situation by implementing a $1.5 million recovery plan for CryptoZoo. However, he was left disappointed when his efforts failed to yield results.
The lawsuit reveals that Paul personally spent $1 million to repurchase the NFTs between January and March, despite not having earned any money from the project. In the lawsuit, Paul is seeking damages exceeding $75,000, along with interest, lawyer fees, and additional damages and relief to be determined by the court.
CryptoZoo, introduced in 2021, was envisioned as a game where players could purchase NFT “eggs” using the project’s token, ZOO. These eggs would hatch into animals that could be bred to create hybrid creatures, which players could trade and earn more ZOO tokens based on their rarity.
The ZOO token has experienced a significant decline, with a market capitalization of zero and minimal trading volume of 1 cent in the past day, according to CoinMarketCap data. More recently, Findeisen shed light on Rabbit AI’s alleged involvement in the NFT space. According to his findings, Rabbit AI was previously known as Cyber Manufacture Co. and managed to raise $6 million for an NFT project named Gama. However, the company’s founder and CEO, Jesse Lyu, later distanced Rabbit AI from the world of cryptocurrencies, stating that they would “never touch crypto” in Discord statements.
