Pump.fun hit with suit claming all memecoins are securities
A proposed class-action suit alleged all crypto tokens on Pump.fun are “unregistered security memecoins” that earned the platform nearly $500 million.
Solana memecoin creation platform Pump.fun was hit with a proposed class-action suit alleging every token it helped make is an unregistered security from which it made nearly $500 million in fees.
The suit filed by Diego Aguilar in a New York federal court on Jan. 30 claimed that Pump.fun, allegedly run by the UK-based Baton Corporation, used guerilla marketing to generate artificial urgency for “highly volatile” tokens, which resulted in retail investors suffering significant losses.
“Pump.Fun’s core function is to work alongside influencers to co-issue and market unregistered securities. Inherent to its operations are a novel evolution in Ponzi and pump-and-dump schemes,” it claimed.
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Author: Martin Young
