A proposed class-action lawsuit has been filed against former Olympian Caitlyn Jenner by a group of investors who claim to have incurred financial losses due to her promotion of the JENNER memecoin.
The lawsuit, lodged in a California federal court on November 13 by Mihai Caluseru from Romania and Naeem Azad from the United Kingdom, alleges that Jenner, along with her manager Sophia Hutchins, misled investors into purchasing what they describe as unregistered securities.
The plaintiffs, who invested over $56,000 in JENNER, claim they suffered monetary damages. They assert they would not have participated had they been properly informed, suggesting that misleading statements by Jenner influenced their decision.
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According to the lawsuit, Jenner failed to comply with regulatory requirements by not registering the digital token with the appropriate authorities. This alleged oversight deprived investors of essential information needed to assess the risks involved, leading to unforeseen losses.
Initially launched on the Solana
$214.62
blockchain through a platform called Pump.fun in May, the JENNER token swiftly found itself surrounded by controversy. Jenner and other prominent figures accused a collaborator, Sahil Arora, of fraudulent activities, prompting her to relaunch the token on the Ethereum
$3,163.96
network.
The investors allege that Jenner has since neglected the project, ceasing promotional efforts and leaving them facing significant financial setbacks. They argue that recovering these losses is improbable due to Jenner’s purported abandonment of the initiative.
When Jenner transitioned the token to Ethereum, the plaintiffs allege it diminished the Solana-based JENNER token’s worth by imposing a 3% transaction fee or “tax” on Ethereum transactions. They argue that Jenner never disclosed this fee arrangement, which they claim unfairly enriched her.
In other news, a massive crypto scam involving $232 million has rocked South Korea, leading to the arrest of an influencer and 215 others accused of fraud. What led to this large-scale arrest? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
