A new lawsuit claims Pump.fun misled users and ran a risky token scheme using the Solana blockchain.
- Pump.fun is accused of acting like an unlicensed casino.
- Solana Labs and Jito Labs are also named in the lawsuit.
- Over $160 million in tokens were recently sold by early investors.
New Legal Claims Target Pump.fun
An updated lawsuit was filed in the Southern District of New York against Pump.fun and its partners. The suit says Pump.fun ran a scheme similar to a slot machine, where early users profited at the expense of later ones. It claims over $5.5 billion was pulled from users.
Companies Named in the Case
The court filing lists several groups, including Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation. These organizations allegedly helped the setup by hosting the tokens and benefiting from fees. The complaint also names a developer known only as “Bernie” and parent company Baton Corp.
Charges Go Beyond Fraud
The updated court document adds serious claims, including breaking the RICO Act, fraud, civil conspiracy, and unjust enrichment. The plaintiffs want their money returned and damages for the losses they say came from the system’s design.
How Pump.fun Allegedly Worked
The lawsuit compares the setup to gambling. There was no real project or product — just quick buying and selling of memecoins. These coins had no actual value backing them. Many users reportedly rushed to buy tokens during the hype, then watched prices fall rapidly.
Large Token Sell-Off Raises Concerns
On Tuesday, two major early investors sold over $160 million worth of Pump.fun’s PUMP tokens. These wallets, known as “PUMP Top Fund 1” and “Top Fund 2,” moved most of their holdings to exchanges. This led to fears of further price drops.
History of the Token and Platform
Pump.fun held a private token sale earlier this year, raising nearly $500 million. Despite the hype, data from BitMEX shows that about 60% of presale buyers have already sold or moved their tokens. Analysts say an early unlock of many tokens has hurt the price.
Source: cointelegraph.com
