Crypto: Class Action Lawsuit Filed Against Pump.fun for Fraud!

A class action was filed against Pump.fun, the memecoin creation platform on the Solana blockchain, accusing it of 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, alleges that all cryptos issued on Pump.fun are “unregistered securities” and that the platform has collected nearly $500 million in fees related to these activities.

Crypto: Pump.fun accused of promoting a Ponzi scheme?

According to the complaint, Pump.fun allegedly used aggressive marketing techniques to create an artificial urgency around highly volatile tokens, resulting in significant losses for retail investors. The crypto platform is accused of operating alongside influencers to issue and promote these unregistered securities, constituting an evolution of Ponzi schemes and pump-and-dumps.

Aguilar claims to have purchased several memecoins via Pump.fun and seeks to annul these purchases, along with damages for the affected investors, as well as reimbursement of legal fees.

This lawsuit follows a mid-January announcement from the American law firm Burwick Law, specialized in crypto, which was already considering a similar action against Pump.fun. The firm stated that it had been working for several months with individuals who suffered significant losses due to memecoins, “rug pulls,” and unmet promises on platforms such as Pump.fun.

Pump.fun banned in the United Kingdom!

In December 2024, the UK Financial Conduct Authority (FCA) had banned access to Pump.fun for residents of the UK as part of measures to curb scams. Additionally, the crypto platform was criticized for allowing the dissemination of inappropriate content during its livestreams, including threats of violence and antisocial behavior, which led to the suspension of this feature.

These events highlight the risks associated with investments in memecoins and the need for increased regulation in the crypto field to protect investors from fraudulent practices coming from platforms like Pump.fun.