Iggy Azalea is facing a class-action lawsuit in the U.S. over claims that buyers of her Solana-based MOTHER memecoin were misled about its real-world use cases, business links, and future development.
Summary
- Iggy Azalea faces legal claims over MOTHER token utility promises and business integrations allegedly not delivered.
- The lawsuit says MOTHERLAND used Tether despite being promoted as powered by the MOTHER token.
- MOTHER’s market value dropped sharply after peaking above $136 million in June 2024.
The lawsuit was filed in Manhattan federal court by plaintiff Kenneth Kolbrak on Monday. It names Azalea, whose legal name is Amethyst Amelia Kelly, and seeks damages for MOTHER buyers who lost money after purchasing the token.
The complaint claims Azalea promoted MOTHER as the native token of a wider business ecosystem. That ecosystem allegedly included telecom services, an online casino, a luxury gifting platform, merchandise, and entertainment links.
However, the filing said those claims were “limited, incomplete, contradicted, temporary, or not delivered in a durable way.” The complaint also said the terms tied to market support were not clearly disclosed to consumers.
Kolbrak said he bought MOTHER after seeing public statements about the token’s utility. He claimed he would not have bought the token, or would have paid less, if he had known the alleged claims were not fully delivered.
The lawsuit does not appear to frame MOTHER as a security. Instead, it focuses on consumer protection claims tied to alleged deceptive marketing, payment features, and commercial integrations.
Casino and mobile payment claims face scrutiny
A major part of the lawsuit focuses on MOTHERLAND, an online casino promoted as being “powered by $MOTHER.” The complaint claims that when the casino launched in January 2025, it used Tether for wagering, bonus accounting, and settlement instead of MOTHER.
The filing also questions claims tied to Unreal Mobile. Crypto.news previously reported in June 2024 that Azalea said MOTHER holders would be able to buy smartphones and mobile plans through Unreal Mobile using MOTHER or Solana.
The complaint now claims there is no durable, public MOTHER payment integration on the Unreal Mobile platform as of the lawsuit filing. That claim remains an allegation and has not been tested in court.
Moreover, Azalea had also promoted MOTHER during a wave of celebrity-linked memecoins in 2024. At the time, MOTHER gained attention after Azalea tied it to mobile payments, merchandise, and other planned use cases.
Market maker links are also challenged
The lawsuit also refers to Azalea’s links with crypto market makers Wintermute and DWF Labs. It claims token buyers were not fully told about the terms or risks of those arrangements.
As we reported in July 2024, MOTHER rose after Azalea announced a partnership with DWF Labs. The report said the token jumped more than 30% after the announcement before giving back part of those gains.
MOTHER launched in May 2024 and reached a market value of more than $136 million by mid-June. Its market capitalization has since fallen to about $1.3 million.
Azalea and her representatives had not provided a public comment at the time of reporting. The plaintiffs are represented by Burwick Law, which has filed other lawsuits tied to crypto projects.
