Internet celebrity Logan Paul has initiated a defamation lawsuit against Stephen Findeisen, popularly known as Coffeezilla, regarding videos criticizing Paul’s NFT-based game, CryptoZoo.

The legal action, launched in a district court in San Antonio on June 27, accuses Findeisen of persistently disseminating misleading information aimed at tarnishing Paul’s image by labelling him a fraudster in connection with CryptoZoo.

Background of the Controversy

In late 2022, Coffeezilla released a trio of videos alleging that Logan Paul had engaged in fraudulent activities through the promotion of CryptoZoo.

These videos claim that Paul collected significant funds from NFT sales without compensating the developers needed to bring the game to fruition, effectively leaving the investors with nothing.

The series quickly captured public attention, accumulating millions of views and becoming some of Coffeezilla’s most-watched content.

Despite these accusations, Logan Paul countered with a video, which has since been deleted, asserting that development of the game was ongoing.

He stated that he intended to develop a legitimate blockchain game, contrary to the scam allegations. Court papers suggest that Paul’s intention was mischaracterized by Coffeezilla, who, they allege, omitted crucial information that could have depicted Paul in a more favourable light.

Key Allegations and Defense

The lawsuit further blames Jake Greenbaum, an adviser, and Eduardo Ibanez, a developer, for the failure of CryptoZoo. According to the lawsuit, Ibanez was responsible for the project’s downfall due to his poor management and failure to pay the development team, which contributed to the project’s stalling.

Logan Paul’s legal team is demanding $75,000 in damages, in addition to legal fees, interest, and further punitive damages, arguing that Coffeezilla’s content caused substantial harm to Paul’s reputation by intentionally spreading falsehoods.

Response and Remediation Efforts

Following the backlash and the apparent collapse of the CryptoZoo project, Paul announced a plan to buy back the CryptoZoo NFTs to alleviate the financial losses of the purchasers, funding this initiative from his resources.

The lawsuit emphasizes, “This defamation lawsuit is brought forward to hold Findeisen accountable for his deliberate actions which have significantly damaged Mr. Paul’s public image.”

This case highlights the complex interactions between internet personalities and the responsibilities they hold towards their audience, especially when promoting high-stake investments like NFTs. It serves as a reminder of the legal and ethical considerations in the rapidly evolving digital economy.