- Caitlyn Jenner and her manager have been sued by two individuals who lost thousands on the JENNER token
- Naeem Azad and Mihai Caluseru claim that Jenner and her manager, Sophia Hutchins, manipulated the market by promoting the JENNER token before abruptly switching chains
- The lawsuit alleges that the pair knew they were selling unlicensed securities
Two individuals have sued Caitlyn Jenner and her manager, Sophia Hutchins, accusing them of promoting and selling the JENNER cryptocurrency in violation of securities laws. Naeem Azad and Mihai Caluseru filed the class-action lawsuit in the U.S. District Court for the Central District of California, alleging that Jenner and Hutchins used their social media presence to inflate the value of JENNER, only for the price to collapse when they switched blockchains. The complaint claims that, by not registering the asset, the defendants breached federal securities regulations, with JENNER meeting legal definitions of a security due to the promise of profit based on the promotional efforts of its creators.
Blockchain Switch Led to Dump
The JENNER token launched on May 26 on the Solana blockchain, with Jenner encouraging her followers to invest via her social media accounts. According to the complaint, this bred strong growth, causing excitement among fans and investors, who ultimately saw their investments plummet when Jenner and Hutchins abruptly sold their holdings.
Azad and Caluseru argue that Jenner’s promotion of JENNER followed a pattern of “pump-and-dump” behavior common in cryptocurrency schemes, stating that Jenner and Hutchins initially promoted JENNER on the Solana blockchain, only to pivot to a new version on the Ethereum blockchain. This change led to confusion among investors and a collapse in the value of the Solana-based token; Azad claims to have lost over $25,000 as a result of the defendants’ actions, while Caluseru alleges losses exceeding $31,000.
Legal Implications
The lawsuit contends that JENNER should be considered a security, with the plaintiffs contending that it meets this definition because investors were led to expect returns based on Jenner’s promotional efforts. Jenner and Hutchins, needless to say, did not register the asset, violating securities laws.
The plaintiffs have filed the suit on behalf of all JENNER holders, hoping that the class action will help all those affected recoup their losses. The case is yet another example of celebrity-endorsed coins causing misery and leading to lawsuits.
