The popular platform Pump.fun has become the focus of a lawsuit over violations of U.S. securities laws. The recent allegations involve the sale of unregistered securities and misleading investors.
Allegations of Securities Violations
The lawsuit against Pump.fun was filed on January 30, 2025, in the Southern District of New York. The company is accused of collecting approximately $500 million through the sale of unregistered securities. The primary plaintiff, Diego Aguilar, claims to have suffered financial losses from purchasing tokens on the platform, such as Fwog and Griffain (GRIFFAIN). He accuses the platform of false promises of rapid profits that did not materialize.
Ponzi-like Structure
This case is part of a growing wave of lawsuits against crypto platforms engaged in questionable practices. In February, attorneys from Burwick filed a new complaint accusing Pump.fun of selling unregistered securities through the Peanut the Squirrel token. Allegations include the use of influencers by Pump.fun to create artificial hype around volatile memecoins.
SEC's Changing Approach to Crypto Regulation
The U.S. Securities and Exchange Commission (SEC) is currently grappling with how to classify digital assets as securities. Despite past attempts to classify memecoins as securities, such approaches face scrutiny. Under President Donald Trump's new administration, the SEC plans to create a task force to develop clearer crypto regulation guidelines, which could profoundly impact ongoing cases involving companies like Pump.fun.
Pump.fun is facing serious legal challenges that could reclassify memecoins and reshape the cryptocurrency market. The court's decision may have long-term implications for both the company and the industry.
