Freedom Index
Listen to the article
Rapper Iggy Azalea is facing a class-action lawsuit in the US, accusing her of misleading investors about the real-world utility and future development of her Solana-based memecoin Mother Iggy (MOTHER).
The complaint filed by plaintiff Kenneth Kolbrak in a Manhattan federal court on Monday claimed Azalea, whose real name is Amethyst Amelia Kelly, made representations about the token having real-world utility, commercial integrations and continuing development that never materialized.
“Those representations were limited, incomplete, contradicted, temporary, or not delivered in a durable way,” the complaint said. “The terms and effects of the market support arrangements were never disclosed to consumers.”
Azalea’s MOTHER was one of the buzzier tokens launched amid a frenzy of celebrity-tied memecoins in 2024. The token was launched in May 2024 and reached a peak market value of over $136 million by mid-June. Its market capitalization is now sitting at $1.3 million, according to CoinGecko.
Unlike other celebrities who launched memecoins, Azalea has remained involved with the token, interacting with supporters on social media and promoting it on X.
Kolbrak, the lead plaintiff, claimed he lost “several hundred dollars” investing in MOTHER, which the lawsuit said he would not have done, or would have paid less for, if not for Azalea’s promotions.
According to the complaint, Azalea promoted the token as “the native currency of an expanding ecosystem of real businesses controlled or co-founded by Azalea, including a telecommunications company, an online casino, a luxury gifting marketplace, a merchandise store, and entertainment integrations.”
Source: Burwick Law
The lawsuit claimed that Azalea promoted the online casino MOTHERLAND, which was marketed as being “powered by $MOTHER,” but when it launched in January 2025, the platform used Tether (USDt) for its “wagering, bonus accounting, and settlement.”
The complaint also claimed that Azalea said MOTHER could be used to buy phones and mobile plans through the provider Unreal Mobile, however, “no durable, publicly observable MOTHER payment integration exists on the Unreal Mobile platform” as of the filing of the lawsuit.
It further accuses Azalea of not telling tokenholders about the terms or risks involved when crypto market makers Wintermute and DWF Labs were brought on to manage MOTHER’s trading.
Related: World Liberty sues Justin Sun for defamation in WLFI dispute
The lawsuit seeks damages for MOTHER buyers who lost money, along with attorney fees and costs.
The class is represented by Max Burwick of Burwick Law, who has helped launch multiple class-action lawsuits against crypto projects.
Information on Azalea’s lawyers was not available at the time of writing. Azalea and her management could not be reached for comment.
Magazine: Meet lawyer Max Burwick — ‘The ambulance chaser of crypto’
Read the full article here
Fact Checker
Verify the accuracy of this article using AI-powered analysis and real-time sources.