The legal problem is catching to pump. With two cases in charges of speed and fraud, is this meme coin casino finally running out of luck?
Pump.fun, a platform notorious to launch Meme coins on Solna (SOL) blockchain, is now facing another class-action trial A few days after the first.
The legal battle led by Bervic Law and Wolf Popper LLP alleged that the stage meme is violating the US securities by selling securities in the form of tokens.
The latest lawsuit, filed on January 30 in the southern district of New York, including Baton Corporation Limited (working as Pump. Fun) and major figures Alon Cohen, Dylan Kole and Noa Bernhard Hugo Twidel.
According to the court filing, the plaintiff Diego Aguler claims that he faced financial loss after buying several tokens on the stage including FWOG (FWOG) tokens and Griffen (Griffen) tokens.
These tokens were marketed aggressively with the promises of meme culture and exponential returns, despite allegedly reaching high evaluation, there was significant damage – such as FWOG tokens, which pump. Fun promoted a $ 500 million market cap as a hit.
This suit follows before Case On January 16, the sale of peanut the squirrel (pand) token was filed by Burvic Law by Kendall Carnahan.
Complaint argues that pump.fun co-request and market operates with influential people for unregistered securities. The trial also alleges that the platform’s business model represents a developed form of Ponzi and pump-and-dump schemes, which withdraws a fee of about half a billion from investors.
Legal campaign of Barvik Law against the pump. It is not surprising. On 15 January, Max Barwick, the founder and partner of the firm, openly criticized platforms such as the pump. Fun, “the final development of multi-level marketing scams, human frustration and digital attention hunted on the economy.”
On the same day, his firm urged investors who lost money to Memcoin through rugs and misleading promises, later launched a dedicated website to assist the affected customers.
Beyond legal troubles, pump.fun has also faced controversy over its platform facilities. In November 2024, it introduced a livestream function to promote user engagement.
However, the report quickly abuses the feature to disturb the users and transmit clear materials to users, including violent materials and graphic footage, including minors and animals. Baikalash forced the pump to shut down the feature following extensive condemnation from the Crypto community.
Despite increasing legal and iconic challenges, pump.fun generates large scale revenue. As as 31 January, data Dune analytics indicate that the platform’s total earnings are close to $ 500 million, with approximately $ 47 million in the revenue collected in the previous week.
