A U.S. magistrate judge has recommended dismissing Logan Paul’s former assistant from a federal class action lawsuit over the failed NFT project CryptoZoo, marking the latest development in a widening legal saga that now includes multiple lawsuits and a high-profile defamation battle with a YouTuber.
In a court document filed Monday, Magistrate Judge Ronald C. Griffin said the U.S. District Court for the Western District of Texas lacked personal jurisdiction over Danielle Strobel, who was listed as a 1% founding equity holder in CryptoZoo but is not alleged to have publicly promoted the project.
The suit accuses Paul and several co-defendants of defrauding investors by marketing CryptoZoo NFTs and “Zoo Tokens” with promises of a blockchain-based play-to-earn game that was never launched.
Plaintiffs claim they were misled into buying digital assets that quickly lost value, alleging the project was a pump-and-dump scheme disguised as a game.
While Strobel acquired tokens early and had administrative involvement in the project, Judge Griffin found that her actions did not establish sufficient ties to Texas or its residents to justify jurisdiction over her.
The recommendation also denied plaintiffs’ request to amend the complaint or conduct jurisdictional discovery.
“Plaintiffs neither demonstrate Defendant Strobel directed a tort at the forum, nor had knowledge of her alleged co-conspirators’ tortious tendencies,” Griffin wrote.
If accepted by the presiding district judge, the ruling would result in Strobel’s dismissal from the case without prejudice.
The investor suit is just one front in the widening legal battles tied to CryptoZoo. Paul is also pursuing a defamation claim against Stephen Findeisen, the YouTube investigator known as Coffeezilla, who published a widely viewed video series accusing Paul of running a “scam.”
Filed last year, the complaint alleges Findeisen “maliciously and repeatedly published false statements” about Paul’s role in the project.
On March 26, Magistrate Judge Henry J. Bemporad recommended allowing that case to proceed, ruling that Findeisen’s use of the term “scam” could be interpreted by a reasonable viewer as an assertion of fact, not merely opinion, making it potentially defamatory under Texas law.
Findeisen, who has built a following for his investigations into online scams and deceptive financial influencers, argued in a motion to dismiss that his remarks were opinionated and constitutionally protected. The judge disagreed, citing Findeisen’s investigative framing and extensive online reach.
Both the class action and the defamation case remain pending. Paul has also launched a separate NFT refund initiative, offering to reimburse certain CryptoZoo buyers in exchange for waiving future legal claims.
