Logan Paul's Defamation Lawsuit Against Coffeezilla Moves Forward

According to Cointelegraph, a Texas magistrate judge has recommended that influencer Logan Paul be allowed to proceed with his defamation lawsuit against YouTuber Stephen Findeisen, known as “Coffeezilla.” The lawsuit centers around Findeisen's remarks regarding Paul's failed CryptoZoo project. Magistrate Judge Henry Bemporad, in a report filed on March 26 in a San Antonio federal court, advised federal Judge Orlando Garcia to deny Findeisen’s request to dismiss the lawsuit. Bemporad noted that Findeisen's statements were presented more as factual claims rather than mere opinions. Paul initiated legal action against Findeisen in June, alleging that Findeisen's posts on X and two YouTube videos were malicious and caused reputational harm. CryptoZoo was intended to be a blockchain game where players could purchase NFT “eggs” that would hatch into animals, which could then be bred to create unique creatures and earn tokens based on their rarity. However, the game has yet to be realized. Paul accused Findeisen of labeling him as “a serial scammer” and describing CryptoZoo as a “scam” and a “massive con,” allegations that Paul has denied. Findeisen sought an early judgment last month, arguing that his statements were intended as opinions and that his videos included disclaimers in the description section. However, Bemporad determined that Findeisen’s statements met the legal criteria for defamation and noted that the disclaimers were not prominently displayed, being visible only when the section was expanded. Bemporad added that even if the disclaimers were more visible, they would not alter the factual nature of Findeisen’s assertions. Both Paul and Findeisen have the opportunity to object to Bemporad’s report within 14 days. Legal representatives for both parties did not immediately respond to requests for comment outside of business hours. In 2022, Findeisen released three videos about CryptoZoo, which Paul did not pursue defamation claims against but had previously threatened legal action over. Paul later retracted his threats, apologized, and in January 2023, pledged to devise a plan for CryptoZoo, which materialized a year later with Paul allocating $2.3 million for refunds, provided claimants agreed not to sue over the project. Meanwhile, a group of CryptoZoo buyers has filed a class-action lawsuit against Paul and others allegedly involved in the venture, which Paul has requested to be dismissed. Additionally, he has filed a counter-suit against two business partners, whom he claims are responsible for CryptoZoo’s failure.