Solana-based platform Pump.fun has been hit with a class-action lawsuit in New York federal court. The lawsuit accuses the platform of issuing unregistered securities and generating nearly $500 million in fees.
Details of the Class-Action Lawsuit
Filed by Diego Aguilar on January 30, the lawsuit claims that Pump.fun's operations resulted in substantial financial losses for retail investors. It describes the platform as an evolved form of Ponzi and pump-and-dump schemes. The lawsuit also names Baton Corporation officers who controlled the tokens' infrastructure and promotion.
Reaction and Other Allegations
This lawsuit adds to the mounting legal challenges Pump.fun faces. In mid-January, attorney Max Burwick accused the platform of facilitating memecoin rug pulls, harming young and financially vulnerable individuals. In November 2025, the platform faced criticism for inappropriate content on livestreams.
Financial Activities of Pump.fun
Despite growing legal and ethical concerns, Pump.fun continues to generate significant revenue. According to Dune Analytics, the platform's earnings reached approximately $500 million, with $47 million generated in the last week of January alone.
Thus, Pump.fun faces significant legal and financial challenges, potentially affecting the platform's future operations and the entire memecoin industry.
