A proposed class-action lawsuit has been filed against Pump.fun, a Solana-based memecoin creation platform, by investor Diego Aguilar. The lawsuit, filed on January 30, 2025, in New York federal court, claims that Pump.fun facilitated the creation and marketing of “unregistered securities,” which allegedly led to significant financial losses for retail investors.
According to the lawsuit, Pump.fun, operated by the UK-based Baton Corporation, is accused of using aggressive marketing tactics, including collaborations with influencers, to artificially generate urgency for volatile tokens. The suit suggests that the platform’s operations bear similarities to “Ponzi and pump-and-dump schemes,” which ultimately led to inflated token prices followed by crashes.
The complaint targets not just Pump.fun but also Baton Corporation executives—Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale—who are named in the lawsuit as key figures behind the platform. Aguilar, who claims to have purchased several memecoins through Pump.fun, alleges that the platform controlled crucial elements such as token infrastructure, liquidity, pricing, and promotion, thereby acting as an issuer and statutory seller.
The lawsuit seeks significant relief, including the rescission of token purchases, monetary damages for affected investors, and the recovery of legal costs. It also argues that Pump.fun violated the Securities Act by failing to register the tokens it marketed, categorizing them as “unregistered security memecoins.”
In addition to this lawsuit, Pump.fun has faced scrutiny for controversial content displayed on its platform, with allegations of promoting antisocial acts and unfulfilled promises. This follows recent remarks from Burwick Law, a U.S. law firm, which stated it was pursuing legal action due to memecoin rug pulls and investor losses.
Also Read: Burwick Law Files Lawsuit Against Pump.fun for Controversial Practices in Solana Memecoin Ecosystem
Pump.fun saw a surge in activity in mid-January, reaching an all-time high of $3.3 billion in weekly trading volume, partly fueled by the launch of Trump family memecoins. Despite this, the platform’s legal challenges are now intensifying as it faces increasing regulatory scrutiny.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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