Pump.fun Slammed With Lawsuit For Violating US Securities Laws

One of the app’s users sued the platform after suffering losses from investing in three memecoins it promoted.

By: Joel Lim • January 31, 2025

Pump.fun, a platform for creating and launching tokens on Solana, has been hit with a class action lawsuit for violating federal securities laws.

On Jan. 30, Pump.fun user Diego Aguilar filed a complaint in the Southern District of New York Court against Baton Corporation Limited, the company behind Pump.fun, and its founders, Alex Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale.

Aguilar is represented by Burwick Law, a law firm that previously announced that it would pursue legal action on behalf of investors who have lost money on Pumpfun memecoins in a Jan. 15 X post.

In the lawsuit, Aguilar claims to have suffered losses from investing in FRED, FWOG, and GRIFFAIN, three memecoins created via Pump.fun and promoted in marketing campaigns which the lawsuit claims were designed to drive speculative interest.

Securities Act

Aguilar also filed several complaints against Pump.fun, alleging that the platform knowingly promoted, sold, and solicited the sale of unregistered securities.

He also alleges that the platform has extracted nearly $500 million in fees from selling unregistered securities.

Aguilar claims Pump.fun adopted guerilla marketing tactics to push mass adoption of unregistered securities and that it provides the tools to manage other unregistered securities, even to promote obscenities.

“Pump.Fun’s core function is to work alongside influencers to co-issue and market unregistered securities. Inherent to its operations are a novel evolution in Ponzi and pump and dump schemes,” the filing said.

Aguilar and his attorneys have requested a trial by jury of all claims that can so be tried.

Aguilar’s lawsuit is not the first to be levied against Pumpfun. The platform has received two other lawsuits, one for selling the PNUT token and another for selling Hailey Welch’s HAWK token.