Pump.Fun is in Legal Trouble Facing Class Action Lawsuit

• Pump.fun got a class action lawsuit for violating U.S. securities laws.
• The lawsuit claims all tokens of Pump.fun are unregistered Security Memecoins.

Pump.Fun, the memecoin launchpad and trading platform, is in some serious trouble. The platform received a class action lawsuit for violating U.S. securities laws. Its allegations include Pump.fun offering and selling risky unregistered securities to users. And, it made approximately $500 million from fees.

The lawsuit was filed by Diego Aguilar in the New York court. It claimed that the platform indulged in activities that were not aligned with U.S. securities laws. Moreover, there are other allegations that it is run by the UK-based Baton Corporation and used guerilla marketing to sell risky tokens, which resulted in retail investors suffering significant losses.

Besides this, the lawsuit has other names such as Alon Cohen, Dylan Keller, and Noah Bernhard Hugo Tweedale. These people are Baton Corporation’s officers in UK Companies.

Are Pump.Fun Tokens Unregistered Security Memecoins?

Diego Aguilar named all the tokens of the platform as “unregistered security meme coins.” He claimed that the platform has the control of token’s technical infrastructure, liquidity, pricing, and promotion. Thus, the platform manipulated the market with this advantage.

The lawsuit asserts breaching of the Security Act. It further demands relief for the affected investors in the form of compensation for all monetary damages, legal proceeding fees, and rescission of all token purchases.

Pump.fun and its official team hasn’t reacted yet. However, this is not the first time Pump.fun got into legal trouble. In January, US law firm Burwick Law intended to file a case against Pump.fun for conducting rug pulls and other unfulfilled promises.

Solana memecoin creation platform Pump.fun is now considered the king of controversies. The platform has faced various allegations in recent times. In November 2024, the Pump.fun was seen with various disturbing live streams featuring violent, racist, and shocking content that went viral on all social media platforms.

Moreover, the platform has some serious allegations of illicit drug use, promoting self-harm, racism, and more. These activities harm the reputation of the platform, including Solana.

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