A lawsuit filed on January 30 in a New York federal court accuses Pump.fun, a platform for creating memecoins on Solana
$196.99
, of selling unregistered securities.
The complaint, brought by Diego Aguilar, claims that every token launched on the platform falls under this category. It also alleges that Pump.fun made almost $500 million in fees through its role in issuing and promoting these tokens.
The lawsuit states that Pump.fun, allegedly operated by the UK-based Baton Corporation, used aggressive marketing tactics to create a sense of urgency around new tokens. As a result, many buyers suffered losses when these tokens lost value.
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Aguilar claims he personally bought some of these tokens, but his legal action targets all memecoins released on the platform, which he refers to as “unregistered security memecoins”.
The complaint also names three individuals—Dylan Kerler, Alon Cohen, and Noah Bernhard Hugo Tweedale—as officers of Baton Corporation.
According to the filing, Pump.fun worked with influencers to promote these tokens while controlling their infrastructure, pricing, and liquidity. It describes this approach as a modern take on pump-and-dump schemes, where token prices are artificially inflated before crashing.
The lawsuit argues that Pump.fun was not just a platform but an issuer and seller of these tokens, meaning it should have followed securities regulations. It seeks to reverse all token purchases, compensate affected investors for their losses, and cover legal costs.
Meanwhile, a US law firm called Burwick Law recently announced its plan to file a lawsuit against Pump.fun. What allegations did the firm make? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
