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Burwick Law has filed a class action lawsuit against Iggy Azalea on behalf of buyers of the MOTHER memecoin, alleging that the rapper misled consumers through a promotional campaign built around real world utility, commercial integrations, market maker support, and continued development.
The complaint, filed in the Southern District of New York by plaintiff Kenneth Kolbrak, names Azalea, whose legal name is Amethyst Amelia Kelly, as the main defendant and includes 50 unidentified defendants who allegedly participated in the project.
The filing says Kolbrak bought MOTHER after being exposed to public statements about the token’s utility, integrations, and market support, and suffered financial losses.
The lawsuit says MOTHER is not being pleaded as a security. Instead, the claims are brought under consumer protection and common law theories tied to allegedly deceptive marketing of a consumer facing digital financial product.
The complaint argues that a token does not need to be a security for its promoter to face liability over allegedly misleading claims about utility, access rights, payment functionality, commercial integrations, market support, and demand generating features.
Azalea launched MOTHER on Solana around May 28, 2024. The complaint alleges the token was promoted not as a passive speculative asset, but as the native currency of an expanding business ecosystem tied to Azalea, including Unreal Mobile, an online casino called MOTHERLAND, a luxury gifting marketplace, merchandise, and entertainment integrations.
The filing focuses heavily on MOTHERLAND, which was promoted as an online casino that would be powered by MOTHER. The complaint cites Azalea’s September 2024 statement that holders would need MOTHER to get into MOTHERLAND, while the project account said the casino would launch in November and be powered by the token.
The lawsuit alleges that when MOTHERLAND launched in January 2025, wagering, bonuses, and settlement were denominated in USDT rather than MOTHER, leaving the token without the recurring transactional utility that buyers were allegedly led to expect.
The complaint also challenges claims around Unreal Mobile. Azalea allegedly said users would be able to buy phones or monthly cell plans using MOTHER or SOL, with promotional material claiming savings of up to $600 per year. The filing says no durable, publicly observable MOTHER payment integration exists on Unreal Mobile as of the complaint’s filing date.
Burwick Law’s complaint also points to Azalea’s public market maker announcements. It says she selected Wintermute and DWF Labs, transferred personal token inventory to both firms, and promoted those relationships as signals of legitimacy and exchange credibility.
The complaint alleges consumers were not told the terms of those arrangements, including whether market makers could sell, short, hedge, borrow, lend, or trade MOTHER in ways adverse to retail buyers.
MOTHER reached an estimated $200 million market capitalization within about two weeks of launch, according to the complaint. The token has since declined about 99.5% to roughly $1 million, with the filing alleging that buyers overpaid after relying on representations that the token had durable utility, commercial demand, and professional market support.
The class action seeks damages and equitable relief under New York General Business Law Sections 349 and 350, along with claims for negligent misrepresentation and unjust enrichment. The proposed class includes people and entities that bought or acquired MOTHER from May 28, 2024 through the filing date and suffered losses tied to the alleged conduct.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
English (US) · 