A class-action lawsuit in the US has accused Australian rapper Iggy Azalea of misleading investors about the utility and development of her Solana-based memecoin MOTHER. According to a complaint filed by plaintiff Kenneth Kolbrak in a Manhattan federal court, Azalea promoted MOTHER as a token tied to real businesses and ongoing development, while several of those claims did not materialise. Kolbrak alleged in the filing that representations around utility, commercial integrations, and long-term growth were incomplete or not delivered in a durable way, adding that market support arrangements tied to the token were never disclosed to investors. Filed on Monday, the lawsuit names Azalea, whose legal name is Amethyst Amelia Kelly, and seeks damages for investors who purchased MOTHER and later suffered losses. Kolbrak stated in the complaint that he lost several hundred dollars on the token and would not have invested, or would have paid less, had the promotional claims been fully disclosed. Court documents state that Azalea described MOTHER as the native currency of an ecosystem that included ventures such as a telecommunications service, an online casino, a luxury gifting platform, and merchandise integrations. The complaint points to the launch of the MOTHERLAND online casino in January 2025, where, according to the filing, Tether (USDt) was used for wagering and settlement instead of the MOTHER token that had been promoted. References to a telecom use case have also been challenged in the lawsuit. Kolbrak claimed that Azalea said MOTHER could be used to purchase phones and mobile plans through Unreal Mobile, but the filing states that no publicly verifiable payment integration using the token exists on that platform. Beyond utility claims, the complaint raises concerns about trading arrangements linked to market makers. The plaintiff alleged that investors were not informed about the terms or risks when firms such as DWF Labs and Wintermute were engaged to manage liquidity and trading activity for MOTHER. From early hype to sharp decline Launched in May 2024 during a surge in celebrity-backed memecoins , MOTHER quickly drew attention within the Solana ecosystem. Market data from CoinGecko shows the token’s valuation climbed to over $136 million by mid-June before falling to just $1.3 million at the time of writing. Earlier developments tied to the token had already drawn scrutiny. In July 2024, DWF Labs announced a strategic partnership with Azalea, although details of the arrangement were not disclosed at the time. TradingView data later showed the token lost more than 85% from its peak levels as interest cooled across the sector. Unlike several celebrity-backed tokens that faded after launch, Azalea continued to promote MOTHER and interact with its community on social media. Prior reporting also noted that she positioned the token as a long-term project with real-world applications, including payments for mobile services and integrations across entertainment ventures. More recently, Azalea had been linked to a Solana-based launchpad called Thrust, where she was introduced as a creative director . Project materials described plans to migrate the MOTHER token to the platform and use legally binding smart contracts to improve transparency in token launches, although the lawsuit does not address those developments. The case is being led by attorney Max Burwick of Burwick Law, a firm that has filed multiple class-action lawsuits involving crypto projects. As of publication time, no response from Azalea or her legal representatives had been made available, and the court has not issued a ruling on the claims. The post Iggy Azalea faces lawsuit for misleading investors about MOTHER memecoin appeared first on Invezz
