The judge advised that issuing a default judgment against Eduardo Ibanez and Jake Greenbaum could lead to inconsistent outcomes in the broader lawsuit. Despite Paul's counterclaim and a $2.3 million refund effort, legal troubles persist for him and the NFT project as a while. Meanwhile, the NFT market is rebounding strongly, with its total market cap reaching $6.6 billion in July and CryptoPunks leading the surge. Even Ozzy Osbourne’s death sparked a 400% spike in demand for his CryptoBatz NFTs, as fans raced to own part of the icon’s digital legacy.
Logan Paul's Blame Game Rejected
A US magistrate judge advised that Logan Paul cannot sidestep a lawsuit related to his failed crypto project, CryptoZoo, by shifting blame to the project’s co-creators. Judge Ronald Griffin urged a federal court in Austin, Texas, to reject Paul’s request for a default judgment against CryptoZoo co-founders Eduardo Ibanez and Jake Greenbaum, and explained that doing so could lead to “inconsistent judgments.”
Logan Paul
The case stems from a lawsuit that was filed by CryptoZoo NFT buyers in early 2023, who claimed the project was a fraudulent “rug pull” that failed to deliver promised rewards and a blockchain-based game.
In January of 2024, Paul filed a counterclaim against Ibanez and Greenbaum, asserting they deceived him and caused the project's downfall. However, Judge Griffin stated that allowing a default judgment against the absent co-founders could undermine the broader lawsuit, which accuses all defendants—including Paul—of jointly committing fraudulent acts. He pointed out that the defendants appear to be similarly situated and share closely related defenses, and thus, any ruling singling out Ibanez and Greenbaum would create legal inconsistencies.
Paul’s motion only targets his co-founders and not the claims brought by the NFT buyers, but the judge warned that the risk of conflicting outcomes remains high.
Paul is also entangled in a defamation suit against YouTuber Stephen Findeisen,who is also known as “Coffeezilla.” He criticized CryptoZoo in a series of investigative videos. That lawsuit is moving forward, and Findeisen requested it be merged with the CryptoZoo NFT buyer case—a move Paul opposes.
In an attempt to mitigate fallout from the failed project, Paul set aside $2.3 million in January of 2024 to refund CryptoZoo NFT buyers, offering 0.1 ETH per token—the original sale price in 2021—on the condition that recipients agree not to sue. Despite these efforts, legal troubles around the project continue to escalate.
NFT Market Rebounds
Despite the legal troubles surrounding certain NFT projects, the NFT market in general appears to be staging a comeback, with its total market cap climbing to $6.6 billion in July. This is according to data from DappRadar.
This represents a 94% increase from the previous month, while weekly trading volume surged 51% to $136 million—the highest since February. This rebound happened after several quarters of consistent declines in NFT trading volumes from mid-2024 into 2025.
Weekly NFT trading volume (Source: DappRadar)
Leading the resurgence is the Ethereum-based CryptoPunks collection, which is still the most actively traded NFT project. Floor prices for CryptoPunks jumped 53%, with one Punk—#5577, known as the Cowboy Ape—purchased by GameSquare Holdings for $5.15 million in preferred stock. The Punk's previous owner, Robert Leshner, founder of Compound, will now join GameSquare as a shareholder. It was originally claimed in 2017 and once sold for $454. The Cowboy Ape then fetched $7.7 million in 2022.
CryptoPunks weekly performance (Source: DappRadar)
On Monday, CryptoPunks recorded a floor price of 47.5 ETH, or nearly $180,000, which was a 15.9% increase in just 24 hours. During that day, 83 Punks were purchased by new holders thanks to the renewed wave of interest. DappRadar analyst Sara Gherghelas explained that CryptoPunks remain a symbol of status in the Web3 world, with many viewing ownership as a badge of honor rather than just a financial asset.
Other Ethereum-based collections also saw positive activity. Pudgy Penguins briefly overtook CryptoPunks in seven-day trading volume with over $20 million in sales but later slipped back to second place.
Fans Flock to CryptoBatz NFTs
Meanwhile, Ozzy Osbourne’s death at the age of 76 also triggered a dramatic spike in demand for his CryptoBatz NFT collection, as fans flocked to own a digital piece of the rock legend’s legacy. Within hours of the announcement, the floor price of the Ethereum-based CryptoBatz NFTs surged by more than 400%, rising from below 0.02 ETH to as high as 0.08 ETH. At peak, this translated to approximately $295 per NFT, according to data from OpenSea and CoinGecko.
The CryptoBatz collection was inspired by one of Osbourne’s most infamous moments—his 1982 live performance where he bit the head off a bat on stage, This moment became etched in rock history and internet culture.
CryptoBatz rules
Reflecting that legacy, each CryptoBat NFT allows holders to "bite" another NFT from a compatible wallet and generate a unique hybrid image, merging the CryptoBat with another supported collection. Compatible NFTs for this “biting” feature include projects like Bored Ape Yacht Club (BAYC) and Alien Frenz.
