TLDR

Pump.fun co-founder Sapijiju denied claims that the project cashed out over $436 million in stablecoins.
Sapijiju explained that the funds were part of Pump.fun’s treasury management process and not a sale.
The transfers involved USDC from the PUMP token’s ICO and were moved to internal wallets for business reinvestment.
Lookonchain’s report raised concerns, claiming the funds were transferred to Kraken, suggesting a large-scale sell-off.
Despite the transfers, Pump.fun’s wallet still holds over $855 million in stablecoins and $211 million in Solana.

Pump.fun co-founder Sapijiju has denied claims from blockchain analytics firm Lookonchain that the project cashed out over $436 million in USDC stablecoins. In a post on X, Sapijiju called the allegations “complete misinformation.” He explained that the transfers were part of the company’s treasury management process, not a sale of funds.

Pump.fun Clarifies ICO Funds Used for Treasury

Sapijiju clarified that the USDC involved in the transfers originated from Pump.fun’s PUMP token initial coin offering (ICO). He emphasized that the funds were simply redistributed to internal wallets for treasury management purposes. According to him, the transfers were made to manage the company’s financial runway and prepare for future investments into the business.

Treasury management is a common practice in which projects organize and allocate their funds to ensure business continuity. This can involve reassigning ICO proceeds, operational funds, or reserves between different wallets without selling the assets. Sapijiju also stated that Pump.fun has never directly worked with Circle, the issuer of USDC.

Lookonchain’s Report Sparks Concerns

Lookonchain’s report had raised concerns by stating that wallets associated with Pump.fun had transferred $436 million in USDC to the Kraken exchange. The timing of the transfer coincided with a drop in Pump.fun’s monthly revenue, which fell to $27.3 million in November from $40 million in October, according to DefiLlama data.

This fund movement initially sparked fears in the crypto community that it could signal a large-scale sell-off of the PUMP token. However, Sapijiju denied any such intentions, asserting that these transactions were part of normal treasury management operations.

Despite the reported transfers, data from DefiLlama, Arkham, and Lookonchain showed that Pump.fun’s wallet still held over $855 million in stablecoins and $211 million in Solana. These figures suggested that the company still maintained significant reserves.

Community Divided Over Response

The community’s response to Sapijiju’s explanation has been divided. Some users criticized the statement for raising more questions than answers. X user Voss pointed out contradictions in Sapijiju’s wording, noting that he had claimed no involvement in the transfer while also stating that the company was managing its treasury.

Others defended Pump.fun’s right to manage its assets freely. User Matty.Sol argued that the project had every right to use its revenue as it saw fit. Another user, Oga NFT, suggested that moving USDC after an ICO was standard practice for legitimate projects.

The PUMP token has faced downward pressure in the market. Data from CoinGecko showed the token trading at $0.002714, a 32% drop from its ICO price of $0.004. The token’s value had also decreased by nearly 70% from its peak of $0.0085 in September.

The post Pump.fun Co-Founder Denies $436 Million USDC Cash-Out Allegations appeared first on CoinCentral.

---

Filed under: News - @ November 25, 2025 10:19 pm