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Memecoin: investors take Pump.Fun to court
By Davide Grammatica
Memecoin launch platform Pump.Fun has been hit with a class action lawsuit accusing it of violating U.S. federal financial asset laws
Trouble ahead for Pump.Fun
The memecoin world could face serious regulatory problems. The reason is the recent class action filed against Pump.fun, the famous token-launching platform on Solana, accused of violating U.S. federal financial asset laws.
According to the accusation by investor Diego Aguilar, who filed the lawsuit in a New York court, the platform allegedly exploited an “illicit” system to obtain nearly $500 million through commissions.
“Pump.Fun’s primary function is to partner with various influencers to co-issue and market unregistered financial assets,” the filing reads. “A new evolution of Ponzi and ‘pump and dump‘ schemes.”
The legal problems for Solana memes
Aguilar sued directly Baton Corporation, the company behind the platform, and thus its founders, Alon Cohen, Dylan Kerler and Noah Tweedale. And he claimed to have suffered several losses by investing in three different memecoins, FRED, FWOG and GRIFFAIN.
The problem, according to Aguilar, would be marketing campaigns on socials like TikTok, which promised “100x” or “1000x” returns with the platform’s approval (or at least indifference).
In addition, Pump.fun would not provide the protection needed to protect users, starting with a KYC protocol or anti-money laundering regulations. Earlier this month, the law firm Burwick Law called on the entire community to join in the legal action, and now Pump.fun faces a further challenge in court.
**LEGAL ACTION ALERT: PUMPDOTFUN**
Burwick Law is pursuing legal action on behalf of investors in pumpdotfun memecoins. If you lost money on any pumpdotfun memecoins, you may be entitled to compensation.
Read more below.
— Burwick Law (@BurwickLaw) January 15, 2025
In fact, Burwick Law, again, has already filed two other class action lawsuits against the platform, the first regarding the events around the PNUT token , and the second for the HAWK scandal.
