Pump.Fun Hit With Proposed Class Action Lawsuit Alleging Securities Violations
Pump.fun is facing a new class action lawsuit that claims the company violated U.S. securities laws by generating significant fees—reportedly nearly $500 million—from its memecoin creation platform. The lawsuit, filed in the Southern District of New York, alleges that all tokens created through the platform qualify as securities. The case highlights the ongoing uncertainty in defining what constitutes a security in the cryptocurrency sector. The lead plaintiff, Diego Aguilar, reported losses from trading specific tokens created by Pump.fun. Although the company does not directly create tokens, it has been accused of orchestrating their promotion. The firm has previously faced regulatory scrutiny, including a warning from the U.K. financial regulator, which prompted it to restrict access for U.K.-based users. The lawsuit seeks damages and attorneys' fees, contributing to the growing legal challenges surrounding memecoins in the crypto market.
Source 🔗