According to the complaint filed in California federal court by Naeem Azad and Mihai Caluseru, the JENNER token was not registered with the US Securities and Exchange Commission (SEC). By doing so, the champion and her manager Sophia Hutchins violated securities laws, the plaintiffs claim. Caitlyn Jenner made misleading statements about the sales of Memcoin, causing the complainants to lose approximately $56,000 on their investment in the JENNER token. If it weren’t for the champion’s false statements, they would not have bought this crypto asset, the lawsuit states.
The JENNER token, based on the Solana blockchain, was launched in early May on the pump.fun platform. Shortly after the launch, the JENNER price crashed dramatically. The former gold medalist said she was defrauded by an intermediary named Sahil Arora, who sold all the tokens, and she ended up being harmed by his actions. In June, social network X blocked Arora’s account.
After terminating her business relationship with this intermediary, Jenner promised investors that she would not relaunch a new token and would continue to develop the original memcoin, assuring investors of its continued growth. However, the former champion relaunched JENNER on the Ethereum blockchain, which reduced the value of the original Solana-based token. Additionally, the celebrity failed to disclose the 3% tax rate that was applied to each transaction, affected investors added.
On November 13, the JENNER token launched on Ethereum reached an all-time low of $0.00007623. Its market capitalization now stands at $170,429, although it previously peaked at $7.5 million.
Earlier, Ethereum co-founder Vitalik Buterin criticized memcoins launched by representatives of sports, show business and politics. In his opinion, these tokens have no value and do not bring practical benefit to society.
Source: Bits
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