A class action lawsuit has been filed against Pump.fun, the memecoin creation platform on the Solana blockchain, for allegedly selling unregistered securities and promoting “pump-and-dump” schemes. The complaint, filed on January 30, 2025, in a federal court in New York by Diego Aguilar, claims that all cryptos issued on Pump.fun are considered “unregistered securities” and that the platform has collected nearly $500 million in fees related to these activities.
According to the complaint, Pump.fun is accused of using aggressive marketing techniques to create artificial urgency around highly volatile tokens, resulting in significant losses for retail investors. The platform is also alleged to have worked alongside influencers to issue and promote these unregistered securities, which the complaint describes as an evolution of Ponzi schemes and pump-and-dumps.
Diego Aguilar, the plaintiff in the lawsuit, claims to have purchased several memecoins via Pump.fun and is seeking to annul these purchases, along with damages for affected investors and reimbursement of legal fees. This legal action follows a mid-January announcement from the American law firm Burwick Law, which specializes in crypto and was already considering a similar lawsuit against Pump.fun. The firm stated that it had been working with individuals who suffered significant losses due to memecoins, “rug pulls,” and unmet promises on platforms like Pump.fun.
In addition to facing legal challenges in the United States, Pump.fun has also been banned in the United Kingdom. In December 2024, the UK Financial Conduct Authority (FCA) prohibited residents from accessing Pump.fun as part of measures to combat scams. The platform was criticized for allowing the dissemination of inappropriate content during its livestreams, including threats of violence and antisocial behavior, leading to the suspension of this feature.
These events underscore the risks associated with investments in memecoins and highlight the need for increased regulation in the crypto field to protect investors from fraudulent practices originating from platforms like Pump.fun. As the case unfolds in court, the outcome could have significant implications for the future of memecoin creation platforms and the broader crypto industry.