A U.S. Magistrate Judge Recommends Dismissing Logan Paul’s Former Assistant from CryptoZoo NFT Lawsuit
A recent recommendation from a U.S. magistrate judge has advised dismissing Logan Paul’s former assistant from a federal class action lawsuit involving the failed NFT project CryptoZoo. This development is part of a broader legal saga that includes multiple lawsuits and a high-profile defamation battle with a prominent YouTuber.
Dismissal Recommendation for Danielle Strobel
In a court document filed Monday, Magistrate Judge Ronald C. Griffin stated that the U.S. District Court for the Western District of Texas does not have personal jurisdiction over Danielle Strobel. Strobel, a 1% founding equity holder in CryptoZoo, is not accused of publicly promoting the project.
The lawsuit alleges that Paul and several co-defendants deceived investors by marketing CryptoZoo NFTs and “Zoo Tokens” with promises of a blockchain-based play-to-earn game that never materialized. Plaintiffs claim they were misled into purchasing digital assets that rapidly lost value, asserting that the project was a pump-and-dump scheme disguised as a game.
Although Strobel was involved in the project early on and had administrative responsibilities, Judge Griffin determined that her actions did not establish sufficient ties to Texas or its residents to warrant jurisdiction over her. The recommendation also rejected plaintiffs’ requests to amend the complaint or conduct jurisdictional discovery.
Legal Battles Surrounding CryptoZoo
If the recommendation is accepted by the presiding district judge, Strobel will be dismissed from the case without prejudice. This investor suit is just one facet of the expanding legal challenges linked to CryptoZoo.
Aside from the class action lawsuit, Paul is also pursuing a defamation claim against Stephen Findeisen, the YouTube investigator known as Coffeezilla. Findeisen released a widely viewed video series accusing Paul of orchestrating a “scam.”
Filed last year, the complaint alleges that Findeisen made false statements about Paul’s involvement in the project. Magistrate Judge Henry J. Bemporad recently recommended allowing the defamation case to proceed, highlighting the potential defamatory nature of Findeisen’s use of the term “scam” under Texas law.
Ongoing Legal Proceedings
Both the class action lawsuit and the defamation case are still pending. Paul has also initiated an NFT refund program, offering to reimburse certain CryptoZoo buyers in exchange for waiving future legal claims.