A federal judge in California has dismissed a class action lawsuit against Caitlyn Jenner and her business partner, Sophia Hutchins, ruling that a British investor could not use U.S. courts to seek damages related to cryptocurrency investments. The lawsuit was brought by Lee Greenfield, who claimed losses exceeding $40,000 from trading Jenner’s digital coins.
U.S. District Judge Stanley Blumenfeld Jr. noted that the lawsuit lacked sufficient information regarding the U.S. involvement in the token purchases. The judge emphasized that, without evidence showing the purchases occurred within the United States, the court could not infer that Jenner had any liability under American securities laws.
Greenfield described himself as having the largest losses among the investors, alleging he sold Jenner’s meme coin at a loss after holding it between May and July 2024. The lawsuit presented multiple claims against Jenner, including allegations of violations of federal securities laws, fraud, and contract disputes, as well as claims against Hutchins for aiding in these actions.
The legal trouble stemmed from the launch of a token called $JENNER on the Solana blockchain, which Greenfield contended lost value after identical tokens were created on the Ethereum platform shortly thereafter. Greenfield also accused Jenner and Hutchins of misleading investors by simultaneously promoting another token named after their pets, despite claims that Jenner was focused solely on her own projects.
Moreover, the lawsuit stated that Jenner profited from these ventures by charging a 3% transaction fee on the Ethereum token. However, Judge Blumenfeld pointed out that the chief complaint offered limited details about Greenfield’s actual purchases and payment methods, which were made using cryptocurrencies from both the Ethereum and Solana blockchains.
In his ruling, the judge permitted Greenfield to file an amended complaint if he could provide clearer evidence of the U.S. connection by May 23. Jenner and Hutchins have until June 6 to respond to any new filings that may arise from this matter.
The complexities surrounding cryptocurrency regulations and the jurisdictional issues highlighted in this case have raised significant questions about investor protections, particularly in situations involving foreign tokens. As the landscape of digital currencies evolves, similar legal challenges are likely to emerge, prompting ongoing discussions within both the legal and financial communities.
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