Logan Paul’s Legal Challenges with CryptoZoo
Logan Paul’s involvement in the controversial NFT project CryptoZoo continues to spark legal drama, as a U.S. magistrate judge, Ronald C. Griffin, has recently suggested dismissing Danielle Strobel, Paul’s former assistant, from an escalating federal class action lawsuit. The recommendation stems from a court filing made on Monday, where Griffin determined that the U.S. District Court for the Western District of Texas did not hold personal jurisdiction over Strobel.
While she was identified as a 1% founding equity stakeholder in CryptoZoo and had some administrative roles, there were no claims that she openly promoted the NFT initiative.
Class Action Lawsuit Details
The class action lawsuit accuses Paul and several associates of misleading investors regarding CryptoZoo NFTs and Zoo Tokens. Plaintiffs assert they were deceived into purchasing digital assets based on promises of a blockchain-driven play-to-earn game, which ultimately never materialized. Consequently, they allege that the project operated as a pump-and-dump scheme disguised as a gaming venture, leading to significant financial losses.
Despite Strobel’s early acquisition of tokens and her involvement in the project, the court found that she did not possess adequate connections to the state of Texas to warrant the court’s authority over her. Judge Griffin’s recommendation also included a rejection of the plaintiffs’ attempts to modify their complaint or seek jurisdictional discovery, stating,
“Plaintiffs neither demonstrate Defendant Strobel directed a tort at the forum, nor had knowledge of her alleged co-conspirators’ tortious tendencies.”
Should the presiding district judge accept Griffin’s ruling, Strobel would be dismissed from the case without prejudice, allowing for the possibility of her being brought back later under different circumstances.
Ongoing Legal Battles
This lawsuit represents only a portion of the legal challenges surrounding CryptoZoo. Paul is concurrently pursuing a defamation action against Stephen Findeisen, known as Coffeezilla on YouTube, who released a series of videos alleging Paul orchestrated a scam. The defamation lawsuit, filed last year, claims that Findeisen maliciously disseminated untrue statements regarding Paul’s involvement in the project.
On March 26, Magistrate Judge Henry J. Bemporad indicated that Findeisen’s assertions, particularly the labeling of the project as a “scam,” could be interpreted as factual claims, potentially making them defamatory under Texas law. In response, Findeisen contended that his statements were protected opinions; however, the court emphasized the context of his investigation and substantial online influence.
As these legal battles unfold, Logan Paul has initiated a separate effort to offer refunds to certain CryptoZoo purchasers in exchange for them relinquishing any future legal claims related to the project.
