A Texas magistrate judge has recommended allowing Logan Paul to dismiss a class-action lawsuit concerning his failed NFT project CryptoZoo. The judge noted that the plaintiffs were unable to adequately connect Paul to their claims of financial loss related to the project, which they allege was a 'rug pull' that failed to deliver promised benefits. While the court is in favor of dismissing the commodity pool fraud claim against Paul, it suggested the plaintiffs could amend nearly all of their 27 other claims. The judge criticized the reasoning behind the fraud allegation, indicating it required 'mental gymnastics.' The case, with ties to events from February 2023, has seen plaintiffs accuse Paul of misleading statements regarding the potential of CryptoZoo NFTs, depicted as virtual animals that could be bred and traded. The outcome of whether the lawsuit will continue depends on the plaintiffs' ability to revise their claims.

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