Pump.fun faces collective appeals on the alleged violations of the securities law

The platform for creating parts even based in Solana Pump.

The pursuit, deposited on January 30, alleys that each token created by Pump.fun constitutes an unregistered guarantee, from which the platform benefited from nearly $ 500 million in fees.

Alleged violations of titles and losses of investors

The principal applicant, Diego Aguilar, claims to have undergone financial losses merchant three pieces of memes created by a little blow, FWOG, Fred and Griffain.

According to the file, these tokens were marketed aggressively using the culture of memes and promises of exponential returns, attractive investors but ultimately resulting in significant financial losses. The FWOG, for example, was promoted as having reached a market capitalization of $ 500 million before the drop in its value.

“The main function of Pump.fun is to work alongside influencers to co-publish and market unregistered titles. Inherent in its operations is a new evolution in the Ponzi and Pump-And-Dump patterns, “read the document.

Although the platform does not directly create the tokens in question, the complaint maintains that it facilitates and organizes their launch via automated tools, allowing users to create and sell digital assets in a few minutes. According to the trial, this makes the company a “joint transmitter” of all the tokens launched on it.

The case appoints Baton Corporation recorded in the United Kingdom, the alleged operator of Pump.fun, and three of its co -founders – Alon Cohen, Dylan Kerler and Noah Tweedale – as defendants. The complainants are looking for legal compensation in the form of cancellation of all token purchases, monetary damages for affected investors and the coverage of dispute costs.

Criticism and controversy

This is not the first time that the platform has faced legal action. Two weeks earlier, on January 16, Burwick Law filed a separate collective appeal on behalf of the investor Kendall Carnahan.

This case also accused Baton Corporation and its managers of selling unregistered titles. More specifically, he targeted the IPP token, a piece of memes based in Solana inspired by peanut L’Embéluil which would have reached a market capitalization of $ 1 billion.

The founder of the firm, Max Burwick, was vocal in his criticism of these sites. On January 15, he publicly condemned them as “the ultimate evolution of marketing scams on several levels, attacking human despair and the economy of digital attention”.

A day later, Burwick Law officially announced his legal campaign against the company, alleging that investors had been victims of the prints on the carpet even corner and deceptive promises.

Pump.fun was also faced with the controversy after its introduction in November 2024 of a live function to improve user engagement. Some users quickly abused functionality to distribute explicit and disturbing content. After the public counterpoux, the company was forced to close the delivery live, leading to a marked drop in income.