Caitlyn Jenner faces lawsuit over unregistered JENNER meme coin

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As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies and securities law, I find myself deeply troubled by the events surrounding Caitlyn Jenner and the JENNER token. The allegations of non-compliance with SEC regulations, false statements, and misleading actions are concerning, to say the least.

A group of purchasers from JENNER brought forward a collective legal action, alleging that Caitlyn Jenner, the former Olympian, did not properly register her token with the Securities and Exchange Commission (SEC) and made deceptive and inaccurate declarations about its sale.

As stated by Bloomberg Law, Naeem Azad and Mihai Caluseru submitted a lawsuit to a California federal court on November 13th, alleging that Caitlyn Jenner and her manager Sophia Hutchins potentially breached both federal and state securities regulations while promoting the meme coin JENNER.

They assert that they suffered a loss of approximately $56,000 from purchasing tokens on Ethereum (ETH) and Solana (SOL), and they state that they would not have invested in the JENNER token initially if it hadn’t been for the “misleading statements and omissions” made by Jenner.

As a financial analyst, I found myself delving into the world of cryptocurrency in early May 2024 when the JENNER token made its debut on Solana via pump.fun. However, things took an unexpected turn shortly after Jenner alleged that she had been swindled by an intermediary known as Sahil Arora.

According to crypto.news’s earlier report, it was alleged that Jenner’s account was manipulated to advertise a fraudulent cryptocurrency named JENNER. This coin faced a dramatic decline in value soon after its debut. Interestingly, Jenner and her team brought on Sahil to launch the token, but they accused him of deceiving investors by immediately selling all the tokens he had acquired following the launch.

Not long after Jenner ended her relationship with Sahil, Azad and Mihai claimed that Jenner had originally informed investors she wouldn’t re-introduce the token, but rather focus on its initial promotion.

According to the lawsuit, Jenner assured investors that there won’t be a re-launch of the token and it will keep expanding on the Solana blockchain, with Jenner and her team providing ongoing support.

Subsequently, Jenner introduced a revamped version of the JENNER token on Ethereum. This action, as asserted by Azad and Caluseru, significantly lowered the value of the initial Solana token. Additionally, they claimed that every transaction incurred a 3% fee, an alleged practice that Jenner hadn’t transparently disclosed.

According to CoinGecko’s data, the JENNER token, which debuted on Ethereum, reached a record-breaking low on November 13th, trading at approximately 0.00007623 USD. This popular meme coin currently has a market capitalization of about $170,429, in stark contrast to its peak value of nearly $7.5 million.

The lawsuit also stated that Jenner failed to register the token with the Securities and Exchange Commission, which they clai,m lead to “significant damages” suffered by buyers who were unable to evaluate the risk of investing in the token.

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2024-11-14 11:14