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Caitlyn Jenner Faces Lawsuit Over JENNER Memecoin in Alleged Securities Violation

Crypto

Business Honor
15 November, 2024

A class-action lawsuit claims the JENNER token was sold as an unregistered security, leading to investor losses.

A class-action lawsuit has been filed against Caitlyn Jenner, alleging that the reality TV star and former Olympian misled investors in the JENNER memecoin project, which is accused of being an unregistered security. The complaint, filed in a California federal court, names Jenner and her manager Sophia Hutchins as defendants. It claims that Jenner’s promotion of the JENNER token led to substantial losses for buyers, who were reportedly misinformed about the investment risks involved.

Plaintiffs Naeem Azad of the United Kingdom and Mihai Caluseru of Romania together lost more than $56,000 from what they claim are false and misleading statements made by Jenner. The plaintiffs note that the token was not registered with the SEC, a prerequisite for any asset that falls under the classification of a security.

In May, the JENNER token debuted on the Solana blockchain but was soon marred by scandal after Jenner and other celebrities accused a collaborator of fraud. After the price of the token plunged, Jenner relaunched it on the Ethereum blockchain; however, its fortunes didn't change, with the token's value falling from $7.5 million to less than $200,000 by November.

It is based on Jenner misleading the token's potential market value and for not disclosing important information such as 3% transaction fee and her personal profits. Besides, it further stated that Jenner failed to inform investors about her involvement with exchange listings, and she never declared buybacks.

This legal action highlights growing concerns about the regulation of celebrity-endorsed cryptocurrency projects and their compliance with securities laws.