Reality TV star Caitlyn Jenner has been sued by users who invested in her $JENNER memecoin.
The famous Olympian is being accused of selling her tokens as unregistered securities. The class-action suit was reportedly filed on Wednesday, November 13, by two investors, one from the UK and another from Romania, who claim they lost over $56,000 investing in the JENNER memecoin.
Caitlyn Jenner is now facing a lawsuit in California for unregistered securities sales and fraud after she launched the $JENNER memecoin.
HIGHLY UNSURPRISING pic.twitter.com/kKQuUOqGam
— Jack Kubinec (@whosknave) November 15, 2024
The Rise and Fall of JENNER Token
The JENNER token was originally launched on Solana through the platform Pump.fun. As expected, there was much hype surrounding the launch, considering Jenner’s status as one of Hollywood’s biggest names.
However, the token was surrounded by controversy, which kept it from delivering the gains many expected. Shortly after its launch, Jenner and others accused a collaborator, Sahil Arora, of scamming them. In response, the transgender activist relaunched the token on Ethereum, but the damage was already done.
Today, the token is worth a fraction of its former value. At its peak, JENNER’s market cap soared to nearly $7.5 million, but it now sits at around $104,000. Daily trading volume has equally dropped, with less than $2 in activity recorded recently. According to the lawsuit, Jenner has since distanced herself from the project, leaving investors with heavy losses.
The suit claims Jenner failed to warn her investors of the risks involved in buying her tokens. The complaint also bashed the Hollywood star for failed promises such as token listings and buybacks.
A Look into Celebrity Tokens
This lawsuit isn’t just about one memecoin —it raises broader questions about celebrity involvement in cryptocurrency. The involvement of public figures like Jenner in tokens can bear huge risks for investors if things go south.
Most investors are swayed into buying celebrity tokens, banking on the star power of the celebrity involved. So, regulators have urged celebrities to be more transparent when releasing tokens. Interestingly, Kim Kardashian was previously in hot water after failing to disclose that she received payment for promoting EthereumMax on her Instagram. The model reportedly received $250,000 for the post but failed to inform her followers.
Kim Kardashian and Floyd Mayweather are being sued for allegedly misleading investors and artificially inflating the price of a cryptocurrency firm’s tokens.
The lawsuit is tied to an Instagram post she made promoting a token. She reportedly makes up to $1M per sponsored post. pic.twitter.com/8lTNCLeMPp
— AJ+ (@ajplus) January 13, 2022
The US SEC fined Kardashian for her failure to disclose the payment. Other celebrities like Cristiano Ronaldo have faced lawsuits for promoting crypto brands .
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