Overview

• 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.