On 05/13/2025, a federal court in California dismissed the class-action lawsuit alleging Caitlyn Jenner committed crypto fraud related to the $JENNER meme coin because the plaintiff did not prove that the transaction occurred in the U.S. However, the opportunity to refile still exists. Where will this drama lead? Let's analyze in detail.
Court Dismisses Case: Lack of Jurisdiction
Judge Stanley Blumenfeld Jr. dismissed the class-action lawsuit against Caitlyn Jenner and associate Sophia Hutchins, on the grounds that the plaintiff – British investor Lee Greenfield – did not prove that the token purchase transaction occurred in the U.S. to be protected by U.S. securities laws. Greenfield claimed to have lost over 40,000 USD after selling the $JENNER meme coin at a loss from May to July 2024, and is the "investor with the largest loss" according to the judge.
The lawsuit did not provide details on how Jenner created liquidity or where the transactions took place. Judge Blumenfeld wrote: "It cannot be reasonably inferred that Jenner is liable for rescission under U.S. securities law." The lawsuit includes 9 allegations: 7 against Jenner (violations of federal and California securities laws, fraud, breach of contract) and 2 against Hutchins (control liability and aiding fraud).
Trick with $JENNER: Two Platforms, One Deception?
Greenfield accused Jenner and Hutchins of misleading investors by issuing $JENNER on Solana, then two days later launching a token of the same name on $ETH , causing the token $SOL to lose value. During this time, Jenner also promoted another token ($BBARK – the name of Jenner and Hutchins' dog), despite claiming to be "fully focused" on $JENNER. Greenfield alleges that Jenner profited from the Ethereum version with a 3% fee on each transaction, harming investors.
Opportunity to Refile: Door Not Yet Closed
Though dismissed, the judge granted Greenfield until 05/23 to file an amended complaint with clearer evidence that the transaction took place in the U.S., qualifying for protection under U.S. law. Jenner and Hutchins have until 06/06 to respond to the new filing. Decrypt reached out to Jenner via the website and sought to contact Greenfield but received no response.
Impact on the Crypto Market
This event brings many signals:
Increase Vigilance: Investors need to be cautious with meme coins, especially from celebrities, amid a crypto fund inflow of 3.4 billion USD last week.
Encouraging Regulation: The lawsuit highlights legal loopholes in crypto, which could push for stricter legal frameworks in the U.S.
Stable Growth: Bitcoin (104,000 USD), Ethereum (2,500 USD), and Solana (146 USD) continue to maintain momentum, though memecoins are prone to volatility.
Future Prospects
If Greenfield cannot prove the transaction occurred in the U.S. by the 05/23 deadline, the lawsuit may be dismissed, affecting similar cases in the next 1-2 years. However, if refiling is successful, this could set a significant precedent for meme coin lawsuits, holding celebrities more accountable.
Conclusion: How Will Meme Coin $JENNER End?
A federal court in California dismissed the lawsuit against Caitlyn Jenner over the $JENNER meme coin due to lack of jurisdiction but allowed the plaintiff to amend until 05/23. The case reveals risks from memecoins and legal loopholes, prompting investors to be more cautious. Stay tuned for updates!
Risk warning: Investing in crypto, especially memecoins, carries high risks due to price volatility and legal uncertainty. Please consider carefully before participating.