Pump.Fun, a memecoin launchpad and trading platform, is facing a class action lawsuit for violating U.S. securities laws. The lawsuit claims that Pump.Fun offered risky unregistered securities to users and made around $500 million from fees. Diego Aguilar filed the lawsuit in a New York court, alleging that the platform’s activities do not comply with U.S. securities regulations.
The lawsuit also names several officers from Baton Corporation, a UK-based company that allegedly runs Pump.Fun. It accuses the platform of using aggressive marketing tactics to sell risky tokens, leading to significant losses for retail investors. Aguilar refers to the tokens as “unregistered security meme coins.” He argues that Pump.Fun controls the technical infrastructure, liquidity, pricing, and promotion of these tokens, allowing them to manipulate the market.
The lawsuit claims that Pump.Fun breached the Securities Act and seeks compensation for affected investors. This includes monetary damages, legal fees, and the cancellation of all token purchases. So far, Pump.Fun and its team have not responded to the allegations.
This is not the first legal issue for Pump.Fun. Earlier in January, a U.S. law firm, Burwick Law, planned to file a case against the platform for conducting rug pulls and failing to fulfill promises. Pump.Fun has become notorious for controversies, including disturbing live streams featuring violent and racist content that gained attention on social media.
Additionally, the platform faces serious allegations related to illicit drug use, promoting self-harm, and racism. These issues have severely damaged the reputation of Pump.Fun and its association with the Solana blockchain.
