A group of investors in the meme coin JENNER has filed a collective lawsuit against Caitlyn Jenner, accusing her of spreading "false and misleading statements" about the token. Caitlyn Jenner is a transgender woman and is regarded as the most famous transgender person in the world. Born as William Bruce Jenner, she is a successful athlete and the parent of six children. Caitlyn is a Christian, a conservative, and actively supports the Republican Party and Trump.
The documents state that there are indicators suggesting that JENNER could be classified as unregistered securities. Naeem Azad and Mihai Caluseru, citizens of the UK and Romania respectively, submitted a complaint to the federal court in California on November 13. They claim that Jenner and her manager Sofia Hutchins "fraudulently attracted financially inexperienced investors from the US and abroad" to purchase unregistered securities.
The plaintiffs added that they lost over $56,000 by investing in JENNER on the Ethereum and Solana blockchains. They assert that they would not have made this investment had it not been for Jenner's "false and misleading statements and omissions." The lawsuit states that Jenner "willfully failed to register" the token with the US Securities and Exchange Commission (SEC), causing investors to "incur substantial losses" due to lacking complete information for an objective risk assessment.
The meme coin JENNER was initially launched on Solana in May through the Pump.fun platform; however, shortly after, Caitlyn Jenner and other celebrities claimed they were deceived by promoter Sahil Arora. Later, the token was relaunched on Ethereum. Since then, its total market value has plummeted from $7.5 million to $271,000.
"Jenner appears to have effectively abandoned the project, no longer promoting the meme coin, leaving investors alone with substantial losses. It is unlikely that these losses will ever be recovered," the complaint states.
The lawsuit also alleges that Jenner "promised" not to relaunch the token, but subsequently did so on Ethereum, leading to a dramatic decline in the value of the original token on Solana. Azad and Caluseru believe that Jenner imposed a 3% "tax" on each transaction but did not disclose this information, which they claim greatly enriched her.
Jenner has been accused of violating securities laws and committing fraud. Hutchins is also mentioned in the lawsuit as a suspect in facilitating the fraud.
Amid this information, the price of the JENNER token has dropped nearly by half: from $0.00059 to $0.00027 and continues to decline.
Who is Sahil Arora?
Promoter Sahil Arora, who is behind many celebrity token projects, reportedly earned about $30 million in 2024, according to an investigation by experts from the platform Bubblemaps.
Arora was born in India. In 2017, when he turned 18, he launched Vuzelaa Group to install cryptocurrency vending machines. From 2020 to 2023, the promoter launched more than 10 crypto projects. However, the tokens from most of them have effectively devalued. For example, the prices of ZelaaPayAE (ZPAE) and ZelaaNFT (NFTZ) have decreased by 99% since their market entry.
Arora is responsible for the creation of tokens for celebrities such as Floyd Mayweather, Caitlyn Jenner, Iggy Azalea, Jason Derulo, Lil Pump, and others.
1/ An investigation into Sahil, featuring unseen footage, who made $30M in 2024 by launching tokens for celebrities—most of which dumped to zero
↓ 🧵 pic.twitter.com/iSo1kFTSdO
— Bubblemaps (@bubblemaps) August 14, 2024
The report states that he controlled between 25% to 40% of the supply of these meme coins. After they hit the market and received promotion from celebrities, he sold the assets, reaping significant profits.
Bubblemaps claimed that Arora frequently releases new assets on the pump.fun platform, asserting that they are linked to celebrities. However, it is difficult to hold him accountable.
The team from the social network X has blocked the account @Habibi_Comm associated with the meme coin promoter.
Source: Bloomberg Law
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