Former Olympian turned reality TV personality Caitlyn Jenner is under legal hot fire after a group of investors launched a class-action lawsuit over her engagement with the JENNER bitcoin token. According to the lawsuit, Jenner pushed the token as an unregistered investment, making fraudulent and deceptive claims meant to entice investors to purchase only to face large losses.
Investors Naeem Azad and Mihai Caluseru, who bought the token on Ethereum and Solana, respectively, claim they lost nearly $56,000 combined, according to the complaint, which is before a California federal court. The plaintiffs contend that Jenner and Sophia Hutchins, her manager, misled consumers about the token by hiding important concerns and therefore preventing their ability to assess the possible consequences of their purchase.
Originally introduced on Solana in May, the JENNER token attracted criticism soon after its release. Jenner claimed that a colleague named Sahil Arora deceived investors and her by selling a large number of tokens, resulting in a significant price collapse. Jenner eventually republished the coin on Ethereum, despite these problems; this action, the plaintiffs say, significantly devalued the initial Solana-based token. They also claim the Ethereum variant of the token featured an unreported 3% transaction fee.
The lawsuit accuses Jenner of violating securities rules by failing to register the token with the Securities and Exchange Commission. It further claims that Jenner benefited from acquiring tokens at reasonable rates and utilizing investor money to advertise and market the cryptocurrency on exchanges. Plaintiffs assert that the unfulfilled promises of market stability and token buybacks intensify investor losses.
With its market capitalization dropping from a peak of $7.5 million to roughly $170,000, the value of the Jenner coin has collapsed. Also, declining trading volumes have left holders with essentially worthless assets. The case contends that Jenner’s lack of openness and project abandonment left investors bearing losses.
Investors are looking for damages for common law fraud, securities fraud, and securities rule violations. Jenner allegedly misled purchasers for her financial gain by purposefully hiding important information. Jenner has not yet answered publicly to the accusations as the legal fight develops.
