Solana Meme Coin Launchpad Pump.fun Faces Class-Action Lawsuit Over Alleged Unregistered Securities, Ponzi Tactics
Popular Solana-based meme coin launchpad Pump.fun has been hit with a class-action lawsuit alleging every token created on the platform is an unregistered security. On Jan. 30, Diego Aguilar filed a suit in a New York federal court against Pump.fun, which is allegedly run by the UK company Baton Corporation. Pump.Fun Accused Of Creating A False Sense Of Urgency For New Tokens In the filing, Aguilar said that the company used guerilla marketing tactics to create an artificial urgency for the “highly volatile” tokens created on the platform. This allegedly led to major losses for retail investors. “ Pump.Fun’s core function is to work alongside influencers to co-issue and market unregistered securities,” Aguilar said in the filing. “Inherent to its operations are a novel evolution in Ponzi and pump-and-dump schemes.” only possible on Solana pic.twitter.com/I1Lc5GPFw1 — pump.fun (@pumpdotfun) January 18, 2025 Alon Cohen, Dyl...