Pump.fun, a popular Solana-based memecoin creation platform, is facing a class-action lawsuit alleging that it offered and sold unregistered securities while generating nearly $500 million in fees.
The lawsuit , filed on January 30 in a New York federal court by plaintiff Diego Aguilar, accuses Pump.fun and its operators of engaging in pump-and-dump schemes, misleading retail investors, and violating U.S. securities laws.
Key Allegations Against Pump.fun
- Pump.fun allegedly operated as an issuer of unregistered securities, controlling token liquidity, pricing, and promotion.
- The platform worked with influencers to create artificial hype, misleading inexperienced investors with promises of 100x or 1000x returns.
- The lawsuit claims that Pump.fun’s structure is a new form of Ponzi and pump-and-dump schemes, leaving retail investors with significant losses.
- Plaintiff Diego Aguilar invested in three memecoins (FRED, FWOG, and GRIFFAIN) and suffered losses due to the platform’s misleading marketing tactics.
- Pump.fun allegedly lacked investor protection measures, such as know-your-customer (KYC) and anti-money laundering (AML) protocols.
Regulatory Scrutiny and Legal Ramifications
This is not the first legal challenge for Pump.fun. The platform is already facing two additional lawsuits related to PNUT and HAWK tokens, both facilitated by law firms Wolf Popper LLP and Burwick Law.
The lawsuit seeks:
- Rescission of all token purchases (forcing the return of funds to investors).
- Monetary damages for affected users.
- Litigation costs to be covered by the defendants.
Despite ongoing legal challenges, Pump.fun remains one of the most active platforms in the Solana ecosystem, generating over $116 million in fees in January 2025 alone.
What’s Next for Pump.fun?
With U.S. regulators cracking down on unregistered securities and fraudulent crypto schemes, the outcome of this lawsuit could set a precedent for memecoin platforms. If the court rules against Pump.fun, other similar platforms could face increased regulatory scrutiny.
For now, the Solana-based memecoin frenzy continues, but with legal risks looming, investors and developers alike will be watching closely.
