A legal battle involving Caitlyn Jenner’s eponymous memecoin took a twist this past week when a California judge dismissed a lawsuit filed by disgruntled investors. The class action, spearheaded by UK citizen Lee Greenfield, accused Jenner and her manager, Sophia Hutchins, of misleading investors and pushing an unregistered security. However, Judge Stanley Blumenfeld Jr. found the claims insufficient, highlighting a lack of jurisdiction and specific allegations.
Caitlyn Jenner Token: A Tumultuous Journey
Launched in May 2024 on the Solana blockchain, the Caitlyn Jenner (JENNER) token aimed to capitalize on the memecoin craze. Yet, it quickly found itself under scrutiny. The token’s debut was marred by allegations of scams involving other celebrity-backed coins, particularly a controversial figure, Sahil Arora. This prompted Jenner to relaunch the token on Ethereum—a move that investors argued devalued the original Solana version while benefiting her through transaction fees. This follows a pattern seen in the broader crypto market, where crypto token failures have soared, with 1 in 4 launched since 2021 dying in Q1, as reported by CoinGecko.
According to CoinGecko, the JENNER token’s market value plummeted from a peak of nearly $7.5 million in June 2024 to a mere $58,775 today. Trading volumes have dwindled to a trickle, signaling waning interest from the crypto community.
Legal Hurdles and Investor Frustrations
The recent court decision underscores the complexities of crypto litigation. Judge Blumenfeld’s ruling cited deficiencies in nine claims laid out by the plaintiffs, ranging from securities violations to common-law fraud. Notably, the court found no evidence that the tokens were sold via a misleading prospectus, as Greenfield himself admitted no such document existed.
In a notable footnote, the judge refrained from determining whether the JENNER tokens qualify as securities—a decision that might evolve with future amendments to the lawsuit. “The securities claims fail on other grounds,” Blumenfeld noted, leaving the door ajar for further legal maneuvers.
Jack Fitzgerald, representing the aggrieved buyers, expressed optimism despite the setback. “We’re pleased the Court recognized the potential for viable claims,” he stated, confirming plans to refine the lawsuit by the May 23 deadline. But with the class unable to pivot to a US-based lead plaintiff, the path forward remains fraught with challenges.
The Broader Implications for Crypto and Celebrities
The JENNER token saga highlights the volatile intersection of celebrity influence and cryptocurrency. While memecoins have captivated the public with promises of quick profits and viral notoriety, they also embody significant risks. Jenner’s venture, like many others, underscores the perils faced by investors navigating this nascent market—particularly those lacking financial sophistication. This is reminiscent of other recent controversies, such as the Movement Labs scandal involving token-dumping, which further illustrates the precarious nature of celebrity-backed crypto ventures.
Critics argue that celebrity-backed tokens often prioritize hype over substance, leaving investors vulnerable to market manipulations and abrupt value declines. The legal uncertainties surrounding these projects further complicate the landscape, as the regulatory framework struggles to keep pace with innovation.
Looking ahead, the JENNER lawsuit may serve as a cautionary tale for both investors and celebrity endorsers. As the crypto market evolves, the need for clear regulations and investor protections becomes ever more apparent. Whether the amended lawsuit will sway the court remains to be seen, but for now, the case raises pressing questions about the future of crypto-celebrity collaborations.
In the coming weeks, as investors regroup and legal teams strategize, the crypto world will be watching closely. Can Jenner’s memecoin saga chart a new course for celebrity-driven tokens, or will it serve as a deterrent for future ventures? The answer may lie in the courtroom—and, perhaps, in the next amendment.
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This article is based on: Caitlyn Jenner memecoin buyers to regroup after judge tosses suit
Further Reading
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- UK’s FCA Seeks Public and Industry Views on Crypto Regulation
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
