Caitlyn Jenner Sued for Allegedly Misleading Investors in Her JENNER Token

Investors Naeem Azad of the UK and Mihai Caluseru of Romania filed a lawsuit on November 13, claiming they were duped into purchasing JENNER tokens on both Solana and Ethereum, losing over $56,000 as a result.

Reality TV star Caitlyn Jenner has been hit with a class-action lawsuit over her failed cryptocurrency venture, the JENNER token, which allegedly resulted in investors losing over $56,000.

According to the lawsuit, investors were misled into purchasing JENNER tokens on both the Solana and Ethereum blockchains, lured by Jenner's promotion of the token as an investment. However, the investors claim that Jenner failed to disclose critical information regarding the token's unregistered status with the U.S. Securities and Exchange Commission (SEC).

The complaint alleges that Jenner "willfully failed" to register the token with the SEC, which deprived investors of the risk disclosures they would have received had the token been registered. The plaintiffs claim that they would not have invested in the token if they had been fully informed.

"We were lured in by Jenner’s promises, but if we had known the true risks, we wouldn’t have bought into this," said Naeem Azad, one of the plaintiffs in the lawsuit.

The lawsuit also highlights Jenner's decision to relaunch the token on the Ethereum blockchain, which, according to the plaintiffs, effectively "killed" the original Solana-based token. The relaunch also introduced a 3% transaction fee, which the plaintiffs allege was never properly disclosed to investors. They claim that this "tax" was designed to enrich Jenner and her team at the expense of unsuspecting buyers.

"Jenner promised no relaunch of the token, but then went ahead with the Ethereum migration, which destroyed the value of the original token," said Mihai Caluseru, another plaintiff in the lawsuit.

Furthermore, the plaintiffs claim that Jenner's failure to disclose important details, such as her own token holdings and the specifics of her relationship with Sahil Arora, who collaborated on the project, contributed to their financial losses.

The class-action lawsuit was filed in California federal court and charges Jenner and her manager, Sophia Hutchins, with security fraud, common law fraud, and a violation of securities laws. Aiding and abetting are attached to both of the aforementioned fraudulent activities involving Hutchins. Damages to compensate for the losses on behalf of the plaintiffs were pursued to rest on misrepresentation and lack of transparency regarding the sale of the token.

Neither Jenner nor her lawyers have commented on the lawsuit. The case puts a spotlight on the legal dangers of celebrity-endorsed cryptocurrencies and the duties that celebrities bear for their promotions under securities laws. As for the future of the JENNER token, it remains to be seen whether the investors will ever recover their losses—or whether Caitlyn Jenner will be forced to answer for the financial fallout of this failed crypto venture.