Pump.Fun, a memecoin launchpad and trading platform, is facing a class action lawsuit for violating U.S. securities laws.
The Lawsuit and Its Claims
Diego Aguilar filed the lawsuit in a New York court, alleging that Pump.Fun offered unregistered securities, making around $500 million from fees.
Allegations Against the Platform
The platform is accused of using aggressive marketing tactics to sell risky tokens, leading to significant losses for retail investors. The lawsuit claims that Pump.Fun controls the technical infrastructure, liquidity, pricing, and promotion of these tokens.
History and Other Accusations
Aside from the current accusations, in January, Burwick Law criticized the company for conducting rug pulls and failing to fulfill promises. The platform's reputation has also been damaged by allegations of illicit drug use and promoting self-harm and racism.
Pump.Fun continues to be at the center of controversies, severely affecting its reputation and affiliation with the Solana blockchain.
