– Texas magistrate recommends dismissing Logan Paul’s NFT lawsuit due to insufficient evidence of his direct involvement in CryptoZoo’s collapse.
– Plaintiffs claimed Paul’s NFTs functioned as fraudulent option contracts, but the judge criticized their arguments as legally unsupported and factually vague.
– While 26 claims could be amended, the judge permanently dismissed a commodity pool fraud claim, noting plaintiffs failed to prove Paul’s personal financial benefit.
– The ruling highlights growing judicial scrutiny of influencer liability in crypto projects, requiring clear evidence of operational control rather than promotional activity.
