The legal cloud hanging over Caitlyn Jenner regarding her foray into the cryptocurrency world has officially cleared. A California federal judge has dismissed a class-action lawsuit brought against the former Olympian and media personality, ruling that her JENNER memecoin does not qualify as an unregistered security under United States law.
Why the Judge Dismissed the JENNER Lawsuit
In an order issued on Thursday, U.S. District Judge Stanley Blumenfeld Jr. explained that the lawsuit failed to prove the JENNER token met the criteria of an “investment contract.” For a digital asset to be considered a security, it generally must involve the pooling of investor funds to develop a product or technology where profits are expected from the efforts of others.
Judge Blumenfeld noted that the JENNER token was explicitly marketed as a “memecoin on the Ethereum blockchain intended solely for entertainment purposes.” While Jenner used her massive social media influence to drive demand, the court found that promotion alone does not create a “common enterprise.” Without a structure that links investor fortunes or uses the money to build a business, the token remains a digital collectible rather than a regulated financial instrument.
The group of investors, led by UK citizen Lee Greenfield, initially sued in late 2024 after claiming combined losses of thousands of dollars following the token’s price collapse. Greenfield himself alleged a personal loss of over $40,000. Despite an amended complaint that attempted to link the token to promised buybacks and even fractionalized ownership of Jenner’s Olympic gold medal, the judge remained unconvinced. He pointed out that many of these plans were either never executed or announced after the plaintiffs had already finished buying their tokens.
The Rise and Fall of the JENNER Token
The JENNER token first made waves in May 2024 when it launched on the Solana blockchain via the popular creator platform Pump.fun. However, the launch was quickly marred by controversy. Jenner and several other celebrities claimed they were scammed by a middleman, Sahil Arora, leading Jenner to relaunch the project on the Ethereum network.
Investors argued that this migration diluted the value of the original Solana-based assets, contributing to a massive price crash. At its height in June 2024, the token reached a market cap of nearly $7.5 million, but it has since lost virtually all its value.
With this federal dismissal, the judge has denied the plaintiffs another chance to amend their complaint in federal court. Any remaining claims regarding breach of contract or common law fraud have been directed toward state court, effectively ending the federal pursuit of Jenner over securities violations. This ruling sets a significant precedent for other celebrities who have launched similar “social tokens” or memecoins based purely on their personal brand.
