Pump.fun Faces Class Action Over Alleged $500M Securities Violations

The Solana-based token platform is accused of enabling unregistered securities sales and profiting from transaction fees.

A class-action lawsuit filed in New York federal court alleges that Pump.fun facilitated the creation of over 50,000 unregistered tokens, violating U.S. securities laws.
The lawsuit claims Baton Corporation, Pump.fun's U.K.-based parent company, earned nearly $500 million through a 1% transaction fee structure.
The case argues that Pump.fun's automated tools inherently produce securities under the Howey Test, raising broader regulatory questions for the $50 billion meme coin market.
The lead plaintiff, Diego Aguilar, claims financial losses from trading Pump.fun-created tokens like FWOG, FRED, and GRIFFAIN, and is seeking damages.
Pump.fun has faced prior controversies, including regulatory warnings in the U.K. and criticism over harmful livestream content, which led to the disabling of its livestream feature last year.