Pump.fun Faces Class Action Lawsuit Over Alleged Securities Violations and Investor Harm

The lawsuit accuses the Solana-based memecoin platform of unregistered securities sales, inadequate investor protections, and enabling harmful content.

New York-based Burwick Law and Wolf Popper LLP have filed a federal class action lawsuit against Pump.fun, alleging the platform violated securities laws by selling unregistered securities through its memecoin offerings.
The lawsuit centers on the popular Peanut the Squirrel (PNUT) token, claiming Pump.fun maintained centralized control over token marketing and trading, making it liable for investor losses.
The filing highlights Pump.fun's lack of age verification, anti-money laundering measures, and risk disclosures, exposing users, including minors, to financial and explicit content risks.
The platform has been criticized for promoting harmful and controversial content, including livestream stunts and tokens linked to hate speech and exploitation, to drive trading volume.
Pump.fun, which has generated over $420 million in fees in its first year, has faced prior controversies, including a UK regulatory warning and a $2 million theft by a former employee.