Caitlyn Jenner was sued following a crypto mishap.
According to court documents obtained by the Mirror US, investors in her memecoin, $JENNER, alleged the investment project was a sham. The class action lawsuit seeks to hold Jenner liable for alleged violations of the Securities Act and of the Law Against Fraud.
“A memecoin derives its value, instead, from the success or failure of its issuer or promoter to attract and sustain community engagement in the project,” explained the lawsuit. However, the plaintiffs accused Jenner of immediately backing a rival coin, $BBARK, just days after the release and marketing of her own. The alleged “she in fact did manipulate” $JENNER’s success in the market for personal gain. It comes as Jenner called on President Donald Trump to help with a gender marker issue on her passport.
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The plaintiffs alleged that many investors “lack the technical and financial sophistication necessary to have evaluated the risks associated with their investment in $JENNER.” Further, they claimed they “were denied the information that would have been contained in the materials required for the registration of $JENNER.”
20,000 investors reportedly purchased the Solana cryptocurrency on its first day of launch in 2024. However, $JENNER’s subsequent promotion of $BBARK allegedly tanked her own coin by approximately 75%.
The star was accused of taking the value of her own currency -Credit:Mike Marsland/Getty Images for S
The lawsuit also pointed to Jenner’s collaboration with the controversial Sahil Arora, who had previously been accused of crypto scams. The signed business deal, according to the court case, promised to “generate maximum revenue for [Jenner] within a timeline of 24 hours from the [initial] tweet from [Jenner].”
However, Arora’s involvement in the coin allegedly collapsed, as did their working relationship. Following the coin’s launch, Arora allegedly “dumped” his share back into the market, causing a crash. The lawsuit argued Jenner had a responsibility to “warn” investors of that risk.
In fact, Jenner even claimed that Arora “scammed” the community in a post on X (formerly Twitter). Despite the plummet, Jenner continued to advertise her coin, acknowledging, “Sahil appears to be fully out.”
When $JENNER opened on the Ethereum chain, Jenner called Arora a “little b–ch” and alleged the crypto investor “pulled the rug” on the others.
She launched the coin on two different crypto chains -Credit:AFP via Getty Images
A rug pull in the crypto world is a scheme where a new project is heavily promoted before being suddenly abandoned. The pull allows developers to profit by selling their holdings at a high price, resulting in a high market supply. As a result, the value of the coin or NFT crashes, leaving other investors to lose money.
$JENNER’s presence on both Solana and Ethereum, the lawsuit alleged, caused confusion and dealt another blow to the Solana-backed currency’s value.
The purchase of the Ethereum coin included a 3% “tax,” allegedly resulting in over $500,000 in profits for Jenner. “Jenner receives 3% of the total amount traded directly via the smart contract functionality on the Ethereum blockchain,” the lawsuit claimed.
The Mirror US contacted an attorney for Caitlyn Jenner for comment.
