Caitlyn Jenner Meme Coin Lawsuit Dismissed Due To Lack Of US Jurisdiction

A federal judge in California recently dismissed a lawsuit brought by investor Lee Greenfield against Caitlyn Jenner and her business partner Sophia Hutchins. Greenfield had turned to the court in hopes of recouping his losses, but the judge ruled that he could not use the U.S. courts.

Lack of evidence of US purchases

US District Judge Stanley Blumenfeld, Jr. noted that the indictment contained no factual information about where or how Jenner had provided the “liquidity.” Without evidence that the token purchases occurred in the US, the court could not “reasonably infer” that Jenner was liable under US securities laws. This raises questions about the ability of investors to take legal action when their transactions take place outside of regular markets.

Loss of more than $40.000

Lee Greenfield claims to have lost more than $40.000 by selling Jenner’s meme coin, which he held for a period between May and July 2024. He is referred to in court documents as “the investor with the largest losses.” The complaint includes no fewer than nine legal arguments against Jenner and Hutchins, seven of which are aimed directly at Jenner. They range from violations of federal securities laws to fraud and breach of contract.

The development of new tokens

Greenfield also alleges that Jenner and Hutchins misled investors by launching an identical coin on two different platforms; first on Solana and two days later on Ethereum. This caused the value of the first token to plummet. In between the creation of these two tokens, Jenner is also said to have promoted another token, called $BBARK, after her and Hutchins' dogs, while she had previously promised to focus entirely on her own tokens, according to Greenfield.

The lawsuit further alleges that Jenner profited from her business by taking a 3% commission on all transactions involving the Ethereum version of her meme coin. However, the judge pointed out that Greenfield’s allegations provide few details about his purchases, claiming only that he “accumulated the tokens” without elaborating on how the transactions were specifically conducted.

What's next?

Before the case can be finally closed, the judge has given Greenfield until May 23 to file a new lawsuit, provided he can demonstrate that he is entitled to U.S. legal protection. Jenner and Hutchins have until June 6 to respond to this potential new lawsuit. It is expected that this case could set an important legal precedent for the crypto industry and investors.

Frequently Asked Questions

What were the main reasons for the judge to dismiss the lawsuit?
The judge found that there was insufficient evidence that Greenfield's token purchases were made in the US, preventing him from finding legal liability against Jenner.

How much money has Greenfield lost?
Greenfield claims to have lost more than $40.000 due to his involvement with Jenner's meme coin.

What can Greenfield do now?
Greenfield has until May 23 to file a new lawsuit if he provides better evidence that his purchases fall under U.S. legal protections.

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