Judge Suggests Logan Paul’s Assistant Be Dismissed from CryptoZoo Investor Lawsuit, What’s Up?

Jakarta, Pintu News – The class action lawsuit against Logan Paul and the founders of CryptoZoo, a controversial NFT and crypto project, has entered a new phase. A United States magistrate judge recommended that the name of Danielle Strobel, Logan Paul’s former assistant, be excluded from the suit for jurisdictional reasons. This development adds to the long list of legal disputes in the cryptocurrency space, including the back-and-forth between Logan Paul and YouTuber Coffeezilla.

CryptoZoo Case Background and Investor Lawsuit

CryptoZoo was initially marketed as an NFT and Zoo token project that promised a play-to-earn model on top of the blockchain. Investors were tempted to buy NFTs and cryptocurrencies that were promised to be used in a digital game that never launched. The plaintiffs accused the project of being a pump-and-dump scheme, where digital assets were sold to the public with no intention of delivering the promised product.

Logan Paul and several of his coworkers, including Danielle Strobel, are on the list of defendants. Strobel herself is known to hold a 1% founding stake in CryptoZoo, but did not actively promote the project to the public. She is only said to have an administrative role and has received tokens at the beginning of the launch.

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Reasons for Danielle Strobel’s Removal from the Lawsuit

Magistrate Judge Ronald C. Griffin found the Texas court lacked personal jurisdiction over Strobel, who currently resides in Colorado. Although he was listed as a shareholder and had involvement early in the project, the judge found there was no substantial evidence that Strobel committed any direct or fraudulent acts that harmed Texans specifically.

The plaintiff’s request to amend the lawsuit or conduct additional discovery regarding jurisdiction was also denied. The judge emphasized that Strobel’s involvement was too limited and did not meet the legal requirements to be sued in Texas. If the judge’s recommendation is accepted by the district judge, Strobel will be officially dismissed from the lawsuit without prejudice.

Legal Dispute Continues: Logan Paul vs Coffeezilla

In addition to the investor case, Logan Paul is also involved in a defamation lawsuit against Stephen Findeisen aka Coffeezilla. Coffeezilla is widely known for his video series accusing Paul of running a scam through the CryptoZoo project. Another judge had previously allowed this defamation case to proceed, as the word “scam” is considered to be interpreted as a fact and not just an opinion, thus potentially causing legal defamation.

Coffeezilla defended itself on the grounds that its investigations were constitutionally protected opinions. However, the judge found Coffeezilla’s investigative framing and audience reach made its statements worthy of legal challenge.

CryptoZoo Project and NFT Refund Program

This class action lawsuit is just one of several legal feuds related to CryptoZoo. Amidst the controversy, Logan Paul launched an NFT refund program as a compensation measure for CryptoZoo NFT buyers. However, this refund program only applies to certain types of NFTs and the value is not comparable to the initial purchase price due to fluctuations in the value of Ethereum (ETH) used as a medium of exchange, which is now around USD 1,900 or IDR 30,833,200 per ETH (1 USD = IDR 16,228).

The refund program is considered by some plaintiffs as a partial solution that does not fulfill the promise of “return of original purchase price” and is considered to exclude many owners of combined tokens and NFTs, thus not solving the root cause of investor losses.

Reflections on Crypto Cases and Legal Jurisdiction

The development of this lawsuit demonstrates that involvement in a crypto project or NFT does not always automatically subject an individual to a lawsuit, especially if there is no strong evidence of an active role in the promotion or specific adverse action in a particular jurisdiction. The CryptoZoo case could set an important precedent for the crypto industry, particularly regarding the limits of personal and jurisdictional liability in volatile digital asset investments.

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Reference:

• Andrew Hayward/Decrypt. Judge Recommends Dropping Logan Paul’s Ex-Assistant From ‘CryptoZoo’ Lawsuit. Accessed July 11, 2025.