CryptoZoo Scandal: Why Logan Paul Is Suing Coffeezilla for Defamation

In early 2023, YouTuber and blockchain investigator Coffeezilla published an in-depth exposé on CryptoZoo, the NFT venture launched by Logan Paul. Across multiple episodes, he referred to the project as a “scam” and branded Paul a “serial scammer.” The videos amassed millions of views, significantly tarnishing Paul’s reputation in the process.

Logan Paul first threatened to sue. Then, he backtracked — even apologized. But in June 2023, he officially filed a defamation lawsuit against Coffeezilla, claiming the videos twisted the facts and damaged his reputation.

Coffeezilla asked the court to dismiss the case, arguing his videos reflected personal opinion. But in March 2024, a Texas court disagreed, stating that the word “scam” could be seen as a factual allegation, not just opinion. The suit will proceed.

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What’s at stake here goes beyond celebrity. This is a case about the evolving boundaries of journalism on YouTube, the limits of free expression, and the legal responsibility that comes with making public claims of fraud.

It’s the reason this piece was written — and the reason it found your attention.

What Is CryptoZoo and Why Do Critics Call It a Scam?

Billed as an NFT game, CryptoZoo allowed users to buy virtual “eggs” that would hatch into collectible animals. Players could breed these animals to create new ones, with rarer combinations generating more in-game tokens.

Logan Paul promoted the project extensively, touting it as a blockchain-based game with gameplay features and the potential for passive income — expectations that, according to critics, were never met.

But the game itself? It never functioned. The much-hyped breeding system was never deployed. The income mechanics stayed on the whiteboard. Buyers were left holding digital eggs with no real use. As development stalled and the team unraveled, CryptoZoo became a cautionary tale in NFT overpromising.

In 2023, Logan Paul found himself at the center of a class-action lawsuit. Investors in CryptoZoo alleged they were victims of a rug pull — a scheme where creators vanish with investor funds, leaving empty promises behind.

Paul distanced himself from the scandal, blaming partners Eddie Ibanez and Jake “CryptoKing” Greenbaum for the project’s collapse. He even filed a countersuit, seeking to rewrite the narrative before it fully unraveled.

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Coffeezilla vs CryptoZoo: The Investigation

In late 2022, Coffeezilla began publishing a series of exposés on CryptoZoo. The seven-part video investigation broke down Logan Paul’s marketing tactics and spotlighted internal tensions within the development team.

The content included interviews with affected investors, leaked conversations, and data that, according to Coffeezilla, hinted at fraudulent behavior.

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Coffeezilla labeled four of his videos with “scam” in the title — one of which went viral with over 10 million views. In one clip, he even called Logan Paul a “serial scammer,” claiming the influencer deliberately misled investors from the start.

Paul’s defamation lawsuit focuses on three of those videos and a post on X, arguing that Coffeezilla framed accusations as factual assertions, not personal opinions — a distinction that could prove pivotal in court.

Coffeezilla argued that his videos were protected commentary, citing a standard disclaimer in the description noting that all claims were “the author’s opinion.” He also highlighted his use of humor throughout the series.

But the court didn’t accept that line of defense.

Judge Bemporad ruled that the disclaimers were hidden in a drop-down section of the video description and unlikely to be seen by viewers. More importantly, the court found that the tone and content of the videos framed the allegations as statements of fact — not mere opinion.

Another key factor in the ruling was Coffeezilla’s self-styled image. As someone who publicly identifies as a crypto journalist and online investigator, his content carries an implicit authority.

The court found that this professional framing could cause viewers to treat his statements as reliable conclusions rather than entertainment or opinion. This interpretation ultimately led the court to reject the motion for dismissal.

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Logan Paul Responds to CryptoZoo Allegations

After being called out by Coffeezilla and cornered by public pressure, Logan Paul had no choice but to respond. In early 2023, he made a pledge to those burned by CryptoZoo.

• His opening move? A $1.8 million refund plan.
• By the next year, he upped the ante to $2.3 million and rolled out a site specifically for compensation claims—an apparent attempt to repair his image.

There was a catch, of course: in exchange for a refund, recipients had to agree not to sue Logan Paul. A legal safeguard, cleverly built into the gesture of goodwill, that conveniently minimized Paul’s exposure to litigation over CryptoZoo.

Simultaneously, Paul pointed fingers at Eddie Ibanez and Jake “CryptoKing” Greenbaum, attempting to cast them as the real culprits behind the collapse—a narrative that aligned with their prior appearance in the investor lawsuit.

Paul’s legal stance was unambiguous: these individuals, he claimed, engineered the downfall from within, intentionally dragging down everyone involved—including himself. He filed counter-lawsuits, citing reputational fallout and personal financial damage tied to their actions on the CryptoZoo team.

Where Things Stand in the Coffeezilla vs Logan Paul Legal Showdown

As of March 26, 2024, the defamation suit brought by Logan Paul against Coffeezilla is officially moving forward. Judge Henry Bemporad ruled that statements made in the CryptoZoo exposé—especially the repeated use of terms like “scam” and fraud accusations—could be understood as assertions of fact, not protected opinions.

Crucially, the judge emphasized that the tone and framing of Coffeezilla’s videos gave viewers the impression of factual reporting. The disclaimers hidden in the video descriptions weren’t enough to negate the weight of the content itself.

The legal standoff isn’t over yet. Bemporad’s ruling is merely a recommendation — the final say lies with federal judge Orlando Garcia. The clock is ticking: each side has 14 days to raise objections before the court rules on whether the battle moves to trial.

Neither Logan Paul nor Coffeezilla has commented publicly. For now, the silence echoes — and the internet holds its breath.

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