{"id":5658,"date":"2025-07-24T11:24:00","date_gmt":"2025-07-24T11:24:00","guid":{"rendered":"https:\/\/bitunikey.com\/news\/is-pump-fun-in-hot-water-legal-woes-deepen-as-third-lawsuit-alleges-fraud\/"},"modified":"2025-07-24T11:24:13","modified_gmt":"2025-07-24T11:24:13","slug":"is-pump-fun-in-hot-water-legal-woes-deepen-as-third-lawsuit-alleges-fraud","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/is-pump-fun-in-hot-water-legal-woes-deepen-as-third-lawsuit-alleges-fraud\/","title":{"rendered":"Is Pump.fun in hot water? Legal woes deepen as third lawsuit alleges fraud"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p>Meme coin launchpad Pump.fun and its founders are back in the spotlight, and once again, it\u2019s for all the wrong reasons.<\/p>\n<div id=\"cn-block-summary-block_82746a1242e472db6b3ef908f59f11fc\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>A new federal lawsuit alleges Pump.fun and its partners ran a meme coin operation designed to defraud users.<\/li>\n<li>Over 98% of Pump.fun tokens failed within 24 hours, according to court filing.<\/li>\n<li>Controversy around Pump.fun has been heating up lately.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>A recently amended class action lawsuit is turning up the pressure on Pump.fun, accusing the Solana-based platform of operating an illegal scheme that systematically drained retail traders through rigged token launches and insider-driven trades.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Pumpdotfun Litigation Update<\/p>\n<p>Burwick Law, on behalf of plaintiffs, filed a new complaint in federal court in the Southern District of New York alleging RICO claims against Anatoly Yakavenko, Raj Gokal, Dan Albert, Lily Liu, Austin Federa, Solana Labs, Solana Foundation, Alon\u2026<\/p>\n<p>\u2014 Burwick Law (@BurwickLaw) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/BurwickLaw\/status\/1948048750490120499?ref_src=twsrc%5Etfw\" target=\"_blank\">July 23, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cdn.prod.website-files.com\/681b670bc176d6cc4203cdf0\/68813e81635e9c3128ed11b4_34%20-%2007232025%20-%20Pump%20Amended%20Complaint%20-%20Aguilar%20v%20Baton%20%281%29.pdf\" target=\"_blank\">Filed<\/a> in the Southern District of New York, the lawsuit alleges that Pump.fun, its founders and affiliates, along with Jito Labs, Solana Labs, and the Solana Foundation, orchestrated a full blown racketeering scheme, using flashy marketing, automated bonding curves, and bots to exploit users.<\/p>\n<h3 class=\"wp-block-heading\">Pump.fun\u2019s \u2018memecoin casino pumped and dumped:\u2019 Lawsuit<\/h3>\n<p>Plaintiffs point to over 11 million tokens launched via Pump.fun between January 2024 and mid-2025. Of these, over 98% collapsed within 24 hours. The lawsuit argues that these tokens weren\u2019t investments, but digital scratch tickets designed to generate transaction fees, not long-term value.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>The platform reportedly earned more than $722 million in fees from the activity. When including Solana and Jito Labs, the total revenue tied to the alleged scheme surpasses $3.18 billion. Plaintiffs say all parties worked together to create what they call the \u201cMeme Coin Casino,\u201d where token launches mimicked slot machine mechanics and early access was reserved for bots and insiders.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cPump.fun designed the gambling mechanics to be structurally exploitable, and Jito Labs served the role of rigging the games,\u201d read the filing. The structure mimics a rigged slot machine where the first few players win by dumping their tokens on later ones. There is no underlying project, product, or revenue\u2014only a fast-moving cycle of buying, dumping, and collapse.\u201d<\/p>\n<\/blockquote>\n<p>The latest amendments build on complaints filed earlier this year.<\/p>\n<h2 class=\"wp-block-heading\">Older lawsuits, same story<\/h2>\n<p>As previously reported by crypto.news, two separate cases were already filed against Pump.fun by the same legal team, accusing the platform of the same pattern of fraud and misconduct.\u00a0<\/p>\n<p>At the time, the filings focused on tokens like FWOG, Griffain, and Peanut the Squirrel, which\u00a0were all launched on the platform before collapsing shortly after. In both lawsuits, plaintiffs alleged that the memecoin launchpad collaborated with influencers and leaned heavily into meme marketing to drive speculative frenzy, while quietly extracting hundreds of millions in trading and launch fees.<\/p>\n<p>The latest case builds on that narrative and adds new allegations, including racketeering, wire fraud, and gambling violations. This adds to the growing wave of scrutiny on Pump.fun, including concerns over its recent native token launch, insider dumps, and more.\u00a0<\/p>\n<p>Despite mounting legal pressure, the platform continues to rake in revenue. As of July 24, <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/dune.com\/tiagocryptonary\/pump-fun-analytics\" target=\"_blank\">data<\/a> from Dune Analytics shows Pump.fun has generated more than $630 million in total earnings.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Meme coin launchpad Pump.fun and its founders are back in the spotlight, and once again, it\u2019s for all the wrong reasons. Summary A new federal lawsuit alleges Pump.fun and its&hellip;<\/p>\n","protected":false},"author":1,"featured_media":3551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=5658"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5658\/revisions"}],"predecessor-version":[{"id":5659,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/5658\/revisions\/5659"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/3551"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=5658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=5658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=5658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}