Listen, there's some interesting news here! A class action lawsuit has been filed in New York against the Pump platform.fun, accusing her of selling unregistered securities and creating conditions for risky trading of meme coins without investor protection.
The lawsuit was filed on January 30 in the Southern District of New York. It says that Pump.fun promoted and sold unregistered securities, while allowing the trading of highly unstable meme coins. The plaintiff, Diego Aguilar, claims that the British Baton Corporation Ltd., which is behind this platform, and its co-founders violated US securities laws. The complaint shows that they offered tokens without registration with the U.S. Securities and Exchange Commission (SEC).
Pump.fun allows users to easily launch meme coins on Solana, eliminating technical and financial barriers. Although they do not directly create meme coins, the lawsuit claims that Pump.fun actually works as a “joint issuer", controlling the creation of tokens, their distribution and ongoing operations.
Aguilar claims that he lost money trading three coins — FWOG, FRED and GRIFFAIN, which were launched on the platform. He, like other investors, demands compensation for his losses.
The complaint also says that Pump.fun helps to create a risky trading environment. The platform allegedly uses gamified features that encourage users, including minors, to create unstable tokens and trade them without providing standard security measures.
According to the plaintiffs, Pump.fun has not implemented important investor protection measures such as Know-your-Customer (KYC) verification, anti-money laundering (AML) compliance, and age verification. There was also no proper risk disclosure or fraud protection.
The lawsuit also mentions “pump and dump” schemes where insiders artificially inflate the prices of tokens and then sell them at a profit, leaving ordinary investors in the red.
One user on social media wrote: “I hope this will lead to the launch of only secure meme coins and reduce the risk of them being hacked.”
By the way, this is not the first lawsuit against Pump.fun. Recently, Burwick Law filed a lawsuit on behalf of investors who also lost money on unsuccessful meme coins and other suspicious projects related to the platform.
Against the background of all this, the attention to unregulated meme coin platforms is only growing. What do you think, will this case have consequences for the entire cryptocurrency industry?