Caitlyn Jenner is being sued for alleged securities fraud by people who invested in her $JENNER memecoin and lost tens of thousands of dollars, according to a class-action lawsuit filed on Wednesday.
Jenner launched $JENNER on the Solana blockchain in May, announcing on Twitter that “it’s not a scam” and that she was “all in.” The plaintiffs, Naeem Azad of the UK and Mihai Caluseru of Romania, claim they lost a combined $56,000 on $JENNER.
Both Naeem Azad from the UK and Mihai Caluseru from Romania invested in $JENNER during its initial launch on the Solana blockchain, and they assert that they would not have invested in the memecoin if Jenner hadn’t made false and misleading statements and omissions. They assert that similar class members who filed this complaint against Jenner lacked the necessary “technical and financial sophistication” to recognize their deception.
The complaint alleges that before offering $JENNER for sale to the public, Jenner was required to file registration statements with the United States Securities and Exchange Commission and to comply with all federal and state securities laws, which she willfully failed to do.
It also asserts that Jenner promoted $JENNER through her social media accounts, podcast appearances, and other public statements. She has “continuously, systematically, directly, and repeatedly touted $JENNER’s ability to increase in value based on her managerial and entrepreneurial efforts, thereby manipulating the market and overall valuation of Jenner’s own cryptocurrency, serving her own financial interests.”
The complaint notes that Jenner “solicited the help” of alleged crypto scammer Sahil Arora, who has run several celebrity memecoin campaigns, including Floyd Mayweather, Offset, and Lindsay Lohan. Shortly after launching $JENNER, Jenner tweeted about Arora’s involvement and ousted him from the project, writing, “FUCK SAHIL! He scammed us! BIG TIME!”
Investors File Class-Action Lawsuit Against Caitlyn Jenner Over JENNER Meme Coin
On November 13, 2024, a federal court in California filed the lawsuit, alleging that Jenner and her manager, Sophia Hutchins, deceived investors into buying the JENNER token without registering it with the U.S. Securities and Exchange Commission (SEC), thereby depriving them of crucial information needed to assess the risks involved.
Investors Naeem Azad from Britain and Mihai Caluseru from Romania reported losses exceeding $56,000 as a result of their investments in the JENNER token, initially introduced on the Solana blockchain in May 2024. According to the lawsuit, Jenner’s public promotion and “false and misleading statements” about the token led them to make uninformed investment decisions.
The plaintiffs argue that if the token had been properly registered with the SEC, they would have received more transparency and legal protections.
The legal complaint highlights the troubled history of the JENNER token, which faced significant hurdles after Jenner and other public figures accused collaborator Sahil Arora of fraud. Following the allegations, Jenner migrated the token to the Ethereum blockchain, a move that did not prevent the token’s value from plummeting.
By November 13, 2024, its market capitalization had crashed from nearly $7.5 million to a mere $170,000, and trading volume dropped to an all-time low, with only $1.80 in daily transactions.
The plaintiffs also claim that Jenner failed to disclose key risks associated with the token, including the impact of Arora’s liquidation of his holdings and the 3% transaction tax imposed on Ethereum transactions. They argue that this tax benefited Jenner while further diminishing the value of the token for investors. The lawsuit alleges that Jenner’s actions contravened securities laws by using proceeds from the JENNER token to finance exchange listings and pledge buybacks without providing adequate disclosure to investors.
Caitlyn Jenner Faces A Lawsuit Over A Failed Cryptocurrency Token
Olympic gold medalist Caitlyn Jenner is facing a class-action lawsuit from investors who claim she misled them into purchasing a failing cryptocurrency token. The token, known as JENNER, has plummeted since its launch, leaving many investors with significant losses.
A group of disgruntled investors, including Naeem Azad from the UK and Mihai Caluseru from Romania, filed the suit in a California federal court. The case alleges that Jenner and her manager, Sophia Hutchins, fraudulently sought to sell the JENNER token as an unregistered security. The plaintiffs assert that false and misleading information about the token’s prospects led to their deception in a project that ultimately failed.
The investors say they have lost over $56,000 in the token Jenner aggressively marketed on her Instagram account. They allege that the two failed to disclose crucial details like the token’s risk and the quantity of tokens held by insiders. According to the plaintiffs, the token’s non-registration with the SEC hurt Jenner because investors could not assess the risks accurately and suffered “significant damages.”
Table of Contents