Pump.fun Faces Class Action Lawsuit for Violating U.S. Securities Laws
A class action lawsuit was filed on January 30 in the Southern District of New York against Pump.fun, alleging violations of U.S. securities laws.
- The platform is accused of promoting and selling unregistered securities.
- Led by plaintiff Diego Aguilar, the lawsuit implicates UK-based Baton Corporation Ltd. and its co-founders.
- Pump.fun enables users to launch meme coins on Solana and is claimed to act as a “joint issuer.”
- Aguilar alleges losses from trading three tokens: FWOG, FRED, and GRIFFAIN.
- The complaint highlights a lack of investor protections such as KYC, AML compliance, and age verification.
- It also claims the platform fosters a risky trading environment with gamified features encouraging speculation.
- Allegations include facilitating “pump and dump” schemes resulting in significant losses for late investors.
- Pump.fun has faced prior legal challenges related to failed meme coin projects.
- This case raises concerns about the regulation of meme coin platforms in the crypto investment landscape.