Pump.fun’s Meme Coin Casino: Is the Party Over?

Legal troubles are piling up for Pump.fun, the platform notorious for launching meme coins on the Solana (SOL) blockchain. With two class-action lawsuits in motion and fraud allegations flying, is this meme coin casino finally running out of luck?

The latest lawsuit, filed on Jan. 30 in the Southern District of New York, names multiple defendants, including Baton Corporation Ltd (operating as Pump.fun) and key figures Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale. According to court filings, plaintiff Diego Aguilar claims he suffered financial losses after purchasing several tokens on the platform, including the Fwog (FWOG) token, and the Griffain (GRIFFAIN) token.

These tokens, aggressively marketed with meme culture and promises of exponential returns, allegedly led to significant losses despite reaching high valuations—such as the FWOG Token, which Pump.fun promoted as having hit a $500 million market cap.

The complaint argues that Pump.fun operates by collaborating with influencers to co-issue and market unregistered securities. The lawsuit also alleges that the platform’s business model represents an evolved form of Ponzi and pump-and-dump schemes, extracting nearly half a billion dollars in fees from investors.

Despite mounting legal and reputational challenges, Pump.fun continues to generate massive revenue. As of Jan. 31, data from Dune Analytics indicates that the platform’s total earnings are nearing $500 million, with nearly $47 million in revenue collected in the past week alone.

But wait, there’s more! Pump.fun also faced controversy over its platform features. In November 2024, it introduced a livestream function to boost user engagement. However, reports quickly emerged of users misusing the feature to broadcast disturbing and explicit content, including violent material and graphic footage involving minors and animals.

So, is the party over for Pump.fun? Only time will tell, but one thing is for sure: the meme coin casino is facing some serious heat.

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2025-01-31 06:36