Pump.fun Served With $500M Class-Action Lawsuit Over Unregistered Securities

Solana-based meme coin platform Pump.fun has been served with a class-action lawsuit alleging that every token launched on the platform constitutes an unregistered security, generating nearly $500 million in fees.

The lawsuit was filed by Diego Aguilar in a New York federal court on January 30, claiming the platform —allegedly operated by UK-based Baton Corporation— engaged in “aggressive marketing tactics” that artificially inflated demand for highly volatile tokens and led to losses for retail investors.

The Allegations Against Pump.fun

The complaint accuses Pump.fun of collaborating with influencers to co-issue and promote unregistered securities, describing the platform’s operations as an evolved form of Ponzi and pump-and-dump schemes.

Named as defendants in the lawsuit are Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale, all listed as Baton Corporation officers in UK Companies House records.

Aguilar claims to have purchased multiple tokens from Pump.fun and stated that all memecoins on the platform qualify as unregistered securities because the platform controlled their technical infrastructure, liquidity, pricing, marketing, etc.

Pump-fun lawsuit — Source: Court Listener

Source: Court Listener

The lawsuit seeks rescission of all token purchases, monetary damages for affected investors, and litigation costs.

Pump.fun and Baton Corporation have not commented on the lawsuit, and information regarding their legal representation was not immediately available.

This is not the first time Pump.fun has been served with a lawsuit. In mid-January, Burwick Law also stated it was pursuing legal action against the platform fun due to alleged rug pulls and unfulfilled promises that resulted in investor losses.

Burwick Law said the platform had become a space for disturbing content, where illicit drug use, self-harm, racism, antisemitism, lewd acts, and violent imagery were publicly displayed.