Influencer Logan Paul has taken legal action against YouTuber Stephen Findeisen, better known as Coffeezilla, by filing a defamation lawsuit on June 27. The lawsuit centers around a series of videos Findeisen produced about Paul's ill-fated non-fungible token (NFT) project, CryptoZoo, which launched in 2022.

According to the lawsuit filed in a San Antonio, Texas District Court, Paul alleges that Findeisen "maliciously and repeatedly" made false statements accusing him of running a scam related to CryptoZoo. The suit claims these allegations have caused significant damage to Paul's reputation. "Paul brings this defamation suit to hold Findeisen accountable for his actions and to hold him liable for the immense harm that he has caused to Paul’s reputation through the intentional and reckless dissemination of defamatory falsehoods," the filing states.

Starting in late 2022, Coffeezilla released three YouTube videos criticizing CryptoZoo, labeling it as "Logan Paul’s biggest scam." Findeisen accused Paul of defrauding his fans by retaining the money of NFT holders without delivering on the promised aspects of the project. These videos garnered significant attention and contributed to a wave of negative publicity for Paul.

In his defense, Paul argues that Coffeezilla purposefully omitted key information in his videos that would have shown Paul was committed to the success of CryptoZoo. Paul contends that he was misled by trusted advisers who turned out to be conmen. The lawsuit asserts, "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 shifts the blame to Eduardo “Eddie” Ibanez, who he claims lied about his credentials, and Jake Greenbaum, an adviser allegedly more interested in personal profit than in helping to create a legitimate project.

Cointelegraph reached out to Ibanez and Greenbaum for comments, but they have not responded. Findeisen could not be immediately reached for comment either.

Interestingly, this lawsuit comes after Paul previously considered suing Findeisen in late 2022 but chose to focus on resolving issues with a $1.5 million recovery plan for CryptoZoo instead. Despite these efforts, Paul expressed disappointment when his attempts to make things right did not materialize. He reportedly spent $1 million buying back the NFTs between January and March, despite not having "earned any money from the project whatsoever," according to the lawsuit.

Logan Paul is now seeking damages in excess of $75,000, plus interest and legal fees. Additionally, he is seeking further damages and relief as determined by the court. This legal battle highlights the complex interplay between influencers, cryptocurrency projects, and the media scrutiny they attract.

CryptoZoo, initially launched in 2021, was envisioned as a game where players could buy NFT “eggs” using the game’s token, ZOO. These eggs would hatch into animals that could be bred to create hybrid animals, which could then be traded for more ZOO tokens, depending on their rarity. However, the project has faced numerous challenges and setbacks. According to CoinMarketCap, the ZOO token's value has plummeted, with a market capitalization of zero and only 1 cent in trading volume over the past day.

The outcome of this lawsuit could have significant implications for the reputations and financial futures of both Logan Paul and Coffeezilla, as well as for the broader cryptocurrency and influencer landscapes. As the legal proceedings unfold, they will undoubtedly be closely watched by both fans and critics alike.