The pursuit was filed Thursday in the South New York District (SDNY). He said the platform has won nearly $ 500 million in fees.
He alleges that Pump.fun allowed users to create and sell mecoins who should be classified as titles.
The trial challenges the pump.
At the heart of the trial is a major question that has long strengthened the cryptographic industry: when is a token considered security? The complainants argue that all the tokens generated on the Pump. However, this question remains far from being settled, especially since the American sec under the new Trump administration resumes its approach to the regulation of cryptography.
The principal applicant, Diego Aguilar, says that he lost money by exchanging three tokens created by funs – FWOG, Fred and Griffain. The trial accuses Pump.Fun of orchestrating a program by providing automated tools that allow users to launch and sell “digital tokens almost worthless” in a few minutes. Consequently, the pursuit alleys that Pump.fun should be considered as a “spousely issuer” of each token launched on its platform, which makes it responsible for compliance with securities laws.
Last: pump. The pleasure was struck by a collective appeal accusing him of having violated the American laws on securities, saying that all the mecoins on the platform are titles. pic.twitter.com/znmncywmsn
– Cointtelegraph (@cointelegraph) January 31, 2025
Last: pump. The pleasure was struck by a collective appeal accusing him of having violated the American laws on securities, saying that all the mecoins on the platform are titles. The costume names Baton Corporation as an Operator of Pump. When asked for comments, Cohen refused to speak on behalf of the company. The other executives could not be joined at the time of publication.
Pump.fun faces several legal battles
This is not the first legal rodeo of Pump.fun. Barely two weeks ago, the same law firm, Wolf Popper LLP, filed a separate collective appeal against the company against the PNUT token, a samecoin based in Solana inspired by the peanut of the squirrel. This token would have reached a market capitalization of $ 1 billion before giving 89% of its peak.
** Trial alert **
Burwick Law and @Wolfpopopperllp have filed a second federal collective appeal on behalf of investors against the Pumpdotfun platform.
Complete complaint available below.
– Burwick Law (@burwicklaw) January 30, 2025
While the SEC strives to establish a clear regulatory framework for cryptographic industry. Cases like this could pave the way for future decisions. A decision for the complainants could trigger more prosecution against the same platforms.
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