09 Feb 2025

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Pump.fun’s Legal Woes Continue—Another Lawsuit Lands

Pump.fun’s Legal Woes Continue—Another Lawsuit Lands

The class-action lawsuit claims that Pump.fun has facilitated the sale of “unregistered meme-coin securities,” allegedly earning the platform $500 million.

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Pump.fun’s meme coin empire is under fire! A lawsuit claims that every token minted on the Solana-based platform is an unregistered security, and that the company raked in $500 million while doing it.

Filed on January 30 in New York, the lawsuit—led by Diego Aguilar—accuses Pump.fun and its alleged parent company, Baton Corporation, of using aggressive marketing to pump volatile tokens, leaving retail investors deep in the red.

Diego Aguilar isn’t just suing over his own meme coin purchases on Pump.fun—he’s taking aim at the entire platform, arguing that every token launched there qualifies as an unregistered security.

“Pump.fun has been teaming up with influencers to create and sell unregistered securities. The entire system is laced with Ponzi-like structures and classic Pump & Dump tactics,” the lawsuit alleges.

The lawsuit accuses Pump.fun of playing both judge and dealer, acting as the token issuer, seller, and market manipulator, overseeing liquidity, pricing, and marketing strategies.

Citing securities law violations, the lawsuit calls for all token sales to be reversed, investors to be reimbursed, and the legal bill to be sent straight to Pump.fun.

The complaint doesn’t stop at Pump.fun—it also names Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Twidale, who are officially listed as Baton Corporation executives in the UK’s Companies House registry.

This isn’t Pump.fun’s first run-in with the law. In mid-January, Burwick Law launched a similar case, alleging that reckless meme-coin hype and broken promises led to massive investor losses.

Lawyers claim Pump.fun hasn’t just been printing meme coins—it’s been printing cash, making hundreds of millions while allegedly allowing drug-related content, violent imagery, racism, and other questionable material to flourish.

And yet, last week, it hit new highs—literally. Meme coins tied to the Trump family sent trading volume skyrocketing to a jaw-dropping $3.3 billion in just seven days.

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