Gushiken Yona
Caitlyn Jenner is facing a legal challenge over her promotion of a cryptocurrency token. A class-action lawsuit alleges the former Olympian misled investors with “false and misleading statements” about the JENNER meme coin.
The lawsuit, filed in a California federal court by Naeem Azad and Mihai Caluseru, alleged Jenner and her manager, Sophia Hutchins, “fraudulently solicited financially unsophisticated investors” to purchase the unregistered securities. Azad and Caluseru, citizens of the United Kingdom and Romania respectively, claim to have lost over $56,000 combined investing in JENNER.
“We wouldn’t have invested a penny,” Azad stated, “if it hadn’t been for Jenner’s misleading claims.” The suit alleged that Jenner and Hutchins targeted unsophisticated investors both in the U.S. and internationally.
The plaintiffs argued that Jenner “willfully failed” to register the JENNER token with the Securities and Exchange Commission (SEC), depriving them of crucial information necessary to evaluate the investment’s risk. They contend that proper registration would have mandated disclosures that could have prevented their losses.
The JENNER token’s history is fraught with controversy. Launched initially on the Solana blockchain via Pump.fun in May, the project quickly faced accusations of a “rug pull” orchestrated by collaborator Sahil Arora. Jenner subsequently relaunched JENNER on the Ethereum blockchain. The plaintiffs allege this move further devalued the original Solana token and instituted a hidden 3% “tax” on each transaction, enriching Jenner while harming investors.
“Jenner appears to have all but abandoned the project, no longer actively promotes the memecoin, and has left holders on the hook for serious losses,” the complaint alleged. “It is unlikely these losses can ever be recovered.”
The lawsuit claimed Jenner touted price and market cap targets for the Solana-based JENNER before its value plummeted after Arora allegedly sold a large portion of his holdings. This, the plaintiffs argue, represents the very risk Jenner should have disclosed.
They further alleged the undisclosed “tax” on Ethereum-based JENNER transactions generated substantial profits for Jenner, which she then used to fund exchange listings and promised—but never delivered—token buybacks.
The plaintiffs accused Jenner of securities fraud and common law fraud, while Hutchins faces allegations of securities law violations and aiding and abetting fraud. The suit also claimed Jenner “willfully omitted” information about her and other insiders’ JENNER holdings, allegedly acquired at a lower cost than the public offering.
This case underlined the increasing scrutiny of celebrity-endorsed cryptocurrencies and the potential legal pitfalls for promoters. The SEC is actively pursuing regulation of digital assets, and this lawsuit against Jenner could set a precedent for future cases involving celebrity tokens.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
