Influencer Logan Paul has been given the green light to proceed with a lawsuit against the YouTuber known as “Coffeezilla,” who is accused of making defamatory statements regarding Paul’s unsuccessful CryptoZoo project, as ruled by a Texas magistrate judge.
In a report submitted on March 26 in a federal court in San Antonio, Magistrate Judge Henry Bemporad suggested that presiding federal Judge Orlando Garcia deny Coffeezilla’s motion to dismiss Paul’s lawsuit, stating that Coffeezilla’s claims were more like factual allegations than simple opinions.
“At the pleading stage, Plaintiff [Paul] has adequately argued that the contested statements possess a reasonable potential for defamatory intent and are not mere opinions,” Bemporad commented.
“The Court should dismiss the Defendants’ argument that the context renders Coffeezilla’s statements non-defamatory,” he added.
Paul initiated the lawsuit against Coffeezilla in June, asserting that a post made by Coffeezilla on X and a pair of YouTube videos regarding his CryptoZoo non-fungible token (NFT) initiative were malicious and led to damage to his reputation.
CryptoZoo was envisioned as a blockchain game where users could purchase NFT “eggs,” which would hatch into animals that could be bred to create unique creatures for earning tokens based on their rarity. The game has yet to be realized.
An illustration of a CryptoZoo NFT creature that combines a shark and an elephant. Source: CryptoZoo
Paul alleged that Coffeezilla referred to him as “a serial scammer” and characterized CryptoZoo as a “scam” and a “massive con,” claims that Paul disputes.
Last month, Coffeezilla sought an early judgment, asserting that his comments were meant to be understood as opinions, bolstered by disclaimers in the video descriptions indicating as much.
However, Bemporad concluded that “the three statements made by Coffeezilla fulfill the legal criteria for defamation” and observed that the disclaimers “are not particularly conspicuous” and are visible only when the section is expanded.
“Even if the disclaimers were more prominently displayed, they would not significantly alter the factual nature of Coffeezilla’s claims,” he remarked.
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Both Paul and Coffeezilla have 14 days to file objections to Bemporad’s report. Legal representatives for both parties did not respond immediately to requests for comments outside regular business hours.
Additionally, Coffeezilla had released three videos in 2022 about CryptoZoo, which Paul did not pursue for defamation but had previously threatened to take legal action over. He later retracted that stance, offered an apology, and in January 2023, promised to devise a plan for CryptoZoo, which was finally presented a year later, with Paul designating $2.3 million for refunds provided claimants agreed not to pursue legal action over the project.
In the meantime, a group of CryptoZoo purchasers filed a class-action lawsuit against Paul and others they allege were involved in the venture, which Paul is seeking to have dismissed. He has also initiated a counter-lawsuit against two business partners whom he holds responsible for the unsuccessful outcome of CryptoZoo.
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