A proposed class-action suit alleged all crypto tokens on Pump.fun are “unregistered security memecoins” that earned the platform nearly $500 million.
Solana memecoin creation platform Pump.fun was hit with a proposed class-action suit alleging every token it helped make is an unregistered security from which it made nearly $500 million in fees.
The suit filed by Diego Aguilar in a New York federal court on Jan. 30 claimed that Pump.fun, allegedly run by the UK-based Baton Corporation, used guerilla marketing to generate artificial urgency for “highly volatile” tokens, which resulted in retail investors suffering significant losses.
“Pump.Fun’s core function is to work alongside influencers to co-issue and market unregistered securities. Inherent to its operations are a novel evolution in Ponzi and pump-and-dump schemes,” it claimed.
Read more,# Pump.fun Facing Legal Heat Over ‘Memecoins’ Madness
## Key Points
– **Proposed Class-Action Suit**: A legal action has been initiated against Pump.fun, alleging that it dealt in “unregistered security memecoins.”
– **Big Bucks**: The platform reportedly raked in $500 million through these memecoins.
– **The Accusations**: Diego Aguilar claims Pump.fun engages in guerilla marketing tactics that create a false sense of urgency, leading to significant losses for retail investors.
– **Ponzi Evolution?**: The suit claims Pump.fun is innovating in the realm of Ponzi and pump-and-dump schemes. Who knew memecoins were capable of such evolution?
– **Based in the UK**: The operations of the platform are allegedly run by a company named Baton Corporation.
## Hot Take
Looks like Pump.fun is about to discover that playing with fire while juggling memecoins can end in a catastrophic meltdown—cue the lawyers! If you thought “hold my beer” was a risky phrase, wait until you hear “invest in this memecoin!” Stay cautious, folks! #MemecoinMadness #CryptoCourtroom #PumpAndDumpDrama
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Original article: https://cointelegraph.com/news/pump-fun-sued-claims-all-memecoins-securities?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
