Legal analysts caution that the launch of Caitlyn Jenner’s meme-inspired cryptocurrency is more hazardous than when Kim Kardashian promoted Ethereum Max – according to a report by Decrypt.

Recently, there has been a surge in popular meme coins that have gained support from celebrities. However, experts warn that these coins could potentially face greater legal consequences than previous enforcement actions.

The SEC of the United States is cracking down on celebrities who use their social media platforms to endorse cryptocurrencies. Among those on the SEC’s list is Kim Kardashian, a well-known businesswoman and step-daughter of Caitlyn Jenner. Jenner recently introduced meme coins named after her on Solana and Ethereum, both popular blockchain networks.

According to lawyers who specialize in securities laws, if Jenner’s meme coins are considered unregistered securities, she could potentially face more serious legal repercussions than Kardashian. Essentially, Jenner could be seen as both someone who created the coins and someone who promotes them, rather than just being a paid spokesperson.

In 2022, the Securities and Exchange Commission (SEC) brought forth charges against Kim Kardashian for endorsing Ethereum Max on her social media, alleging that her actions went against the “anti-touting provision” of federal securities laws.

According to Philip Moustakis of Seward & Kissel LLP, the sole mistake made by Kardashian was her failure to reveal the $250,000 she was paid for her endorsement. Moustakis was formerly a senior counsel at the SEC’s Division of Enforcement.

Kardashian settled the SEC’s charges without admitting or denying them by paying $1.26 million. This amount included $1 million in penalties and approximately $260,000 in disgorgement.

“Disgorgement refers to the payment received by [Kardashian] for promoting, which is often significantly less than the funds raised through a token offering by another party,” explained Moustakis to Decrypt. “It reflects the severity of the risk and the severity of the behavior.”

According to Jenner, using pump.fun, which is a Solana protocol, individuals can quickly create a tradable token using only a small amount of cryptocurrency. Jenner states that she did not have control over any JENNER tokens on the Solana platform.

team reshuffled the

According to Bubblemaps analysis, there was a unique set of electronic wallets that initially owned 25% of JENNER’s total supply during its launch. However, these wallets then sold the tokens for approximately $500,000 worth of other coins. Recently, the team at Jenner reorganized their strategy.