Solana SOL/USD-based meme coin launchpad Pump.fun was hit with a class-action lawsuit on Thursday, claiming that all tokens created on the platform are unregistered securities.
What happened: The suit, filed in a New York federal court, named Baton Corporation, a U.K.-registered company, as the owner of Pump.fun. The complaint alleged that the platform earned nearly half a billion dollars in fees by selling "highly volatile unregistered securities."
The plaintiff further accused Pump.fun of allowing the sale of "worthless" digital tokens in minutes, disregarding basic investor protections, including "Know Your Customer" rules and anti-money laundering protocols.
The lawsuit also claimed that the network has no age verification or restrictions in place, allowing anyone to create tokens on provocative themes.
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The lead complainant, Diego Angular, claimed to have lost money trading Pump.fun meme coins like Fwog (FWOG) and Griffain (GRIFFAIN) and sought compensation.
Alon Cohen, Pump.fun creator, didn’t immediately respond to Benzinga’s request for comment.
Why It Matters: The latest legal trouble comes two weeks after a class-action lawsuit was filed against Pump.fun over the sale of the popular Peanut The Squirrel (PNUT) token.
Pump.fun was at the heart of the Solana meme coin mania last year, spawning multi-million dollar coins like PNUT, Fartcoin (FARTCOIN), and MooDeng (MOODENG).
As of this writing, the combined market capitalization of Pump.fun meme coins was nearly $6 billion, according to CoinGecko. Over the last 24 hours, the valuation fell by 8%.
Photo by Avi Rozen on Shutterstock
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