Iggy Azalea sued over MOTHER memecoin misleading claims

Rapper Iggy Azalea faces a class-action lawsuit filed Monday in Manhattan federal court by investor Kenneth Kolbrak, who alleges she misled buyers about the utility and ongoing development of the Solana-based token MOTHER.

The complaint asserts Azalea promoted MOTHER as a functioning currency for a group of businesses she controlled or co-founded, including a telecommunications provider, an online casino, a luxury gifting marketplace, a merchandise store and entertainment integrations. The filing claims those representations were limited, temporary or never delivered and that market support arrangements were not disclosed to tokenholders.

According to the complaint, MOTHER launched in May 2024 and rose rapidly, reaching a peak market capitalization of more than $136 million by mid-June. The filing states the token’s market value had fallen to about $1.3 million by the time the suit was filed.

The complaint cites specific instances it says contradict public statements. It alleges the online casino MOTHERLAND was advertised as “powered by $MOTHER,” but when the casino launched in January 2025 it used Tether (USDt) for wagering, bonus accounting and settlement rather than MOTHER. The filing also contends claims that MOTHER would be accepted for purchases of phones and mobile plans through Unreal Mobile were not backed by a durable, publicly observable payment integration on the carrier’s platform as of the filing.

Kolbrak’s complaint challenges disclosure around trading arrangements, stating Azalea did not inform tokenholders about the terms or risks when market makers Wintermute and DWF Labs were engaged to manage MOTHER’s trading.

Kolbrak reports he lost “several hundred dollars” investing in MOTHER and alleges he would not have purchased the token, or would have paid less for it, if not for Azalea’s promotions.

The class-action seeks damages for buyers who lost money on MOTHER, plus attorney fees and costs. The suit lists Max Burwick of Burwick Law as counsel for the class. The filing does not provide contact information for Azalea’s attorneys and states Azalea and her management could not be reached for comment.

The complaint adds to legal and regulatory scrutiny of celebrity-backed crypto token launches. Previously, Rapper Drake was named as one of the defendants in a new RICO class-action lawsuit filed in the Eastern District of Virginia.