Pump.fun Faces Class Action Lawsuit Over Alleged $500 Million Securities Violations
Memecoin generator Pump.fun faces a proposed class action lawsuit in the Southern District of New York, alleging violations of U.S. securities laws. Key points include:
- The lawsuit claims Pump.fun and its executives earned nearly $500 million in fees.
- It contends that all tokens created on the platform qualify as securities.
- The lead plaintiff, Diego Aguilar, lost money trading three specific memecoins: FWOG, FRED, and GRIFFAIN.
- Pump.fun is accused of being a “joint issuer” of these tokens despite not creating them directly.
- The suit names Baton Corporation, the alleged operator, along with co-founders Alon Cohen, Dylan Kerler, and Noah Tweedale.
- A previous class action was filed against Pump.fun regarding the PNUT token, which reportedly peaked at a $1 billion market cap but is now down 89% from its high.
- Pump.fun has faced prior regulatory scrutiny, including a warning from the U.K. financial regulator.
The lawsuit seeks damages and attorneys’ fees.