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.

Investors in Caitlyn Jenner’s failed cryptocurrency token, $JENNER, have filed a class-action lawsuit against her, alleging that she misled them into purchasing the unregistered security.

The lawsuit, filed in California federal court on Wednesday, accuses Jenner and her manager, Sophia Hutchins, of making false and misleading statements about the token’s prospects, which led to their deception in a project that ultimately failed.

Investors Naeem Azad of the UK and Mihai Caluseru of Romania claim they lost a combined $56,000 on $JENNER. Both investors purchased the token during its initial launch on the Solana blockchain in May 2024.

The plaintiffs allege that Jenner’s failure to register the token with the U.S. Securities and Exchange Commission (SEC) deprived them of crucial information needed to assess the risks involved.

Had the token been registered with the SEC, investors would have received more transparency and legal protections, according to the lawsuit.

The legal complaint details 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.