Catenaa, Sunday, February 09, 2025 – Memecoin launchpad Pump.fun is facing a second class-action lawsuit, with allegations that the platform facilitated the sale of unregistered securities disguised as memecoins.
Filed on January 30 in the US District Court for the Southern District of New York, the lawsuit claims Pump.fun has generated nearly $500 million in fees by working with influencers to market highly volatile tokens.
The suit, led by plaintiff Diego Aguilar, targets UK-based Baton Corporation, Pump.fun’s parent company, and its co-founders.
Aguilar alleges he suffered financial losses after purchasing several tokens on the platform, including FWOG, FRED, and GRIFFAIN.
The Solana-based FWOG token, for instance, saw an 1,850% surge before dropping 51.20% from its peak, highlighting the speculative nature of such assets.
The complaint describes Pump.fun’s model as an “evolution in Ponzi and pump-and-dump schemes”, accusing it of failing to implement investor protections, such as KYC checks, AML protocols, and risk disclosures.
While the platform does not directly create tokens, the lawsuit asserts it enables the rapid creation and sale of nearly worthless digital assets.
This follows an earlier lawsuit filed on Jan. 16, in which plaintiff Kendall Carnahan accused Pump.fun of selling an unregistered security, Peanut the Squirrel (PNUT) token, which briefly hit a $1 billion market cap.
Attorney Max Burwick, leading the legal challenge, labeled the platform’s operations as “multi-level marketing scams preying on digital speculation.”
