Australian rapper Iggy Azalea, whose real name is Amethyst Amelia Kelly, has been named in a class action lawsuit filed by crypto legal firm Burwick Law in the New York Southern District Court. The suit alleges that Azalea falsely promoted her cryptocurrency MOTHER, causing investors to suffer financial losses.

The lawsuit claims that Azalea misrepresented the utility and exclusivity of MOTHER, which she promoted as the sole means of accessing her online casino, MOTHERLAND, and securing discounts with mobile firm Unreal Mobile. However, the suit states that the casino was not entirely dependent on MOTHER and frequently used stablecoin tether (USDT). Additionally, it notes that the integration with Unreal Mobile never materialized.

In a May 28, 2025 tweet, Azalea highlighted a milestone for MOTHER, stating,

"One year of $MOTHER What we’ve built speaks for itself. Today marks more than just a milestone, it’s the start of something that’s about to ignite."

According to CoinGecko, MOTHER reached a market cap high of nearly $150 million but has since plummeted to $1.2 million.

The lawsuit also targets Azalea’s luxury marketplace, Dream Vault, which allegedly made similar exclusivity promises regarding MOTHER’s usage that were never fulfilled. The suit argues that the promises surrounding MOTHER’s utility, market support, and access rights were "limited, incomplete, contradicted, temporary, or not delivered."

Investors were allegedly misled about the token’s economics and the amount of tokens owned by insiders. While Azalea claimed to hold only 3% of the supply, crypto analysts at Bubblemaps reported that 20% of the supply was purchased by insiders before her public launch. These insiders reportedly sold their holdings for $2 million.

The lawsuit accuses Azalea and other defendants of deceptive practices, false advertising, negligent misrepresentation, and unjust enrichment. It seeks compensatory damages for the alleged losses suffered by victims.

AI Usage Allegations in Burwick Law’s Lawsuits

Burwick Law, the firm representing the plaintiffs, has recently faced scrutiny for errors in its legal filings. In a lawsuit against memecoin platform Pump Fun, the firm admitted to "multiple misplaced quotation marks" and other grammatical errors, stating that they "do not affect any substantive legal argument." However, these flaws have raised concerns about potential AI usage in drafting legal documents, a possibility also observed in the lawsuit against Azalea.

The Azalea lawsuit contains complex sentence structures, colons, and em dashes, along with multiple short sentences that add little substantive information. Protos has reached out to Burwick Law and Azalea’s talent agency, United Talent Agency, for comment but has not yet received a response.

Source: Protos