Pump.fun Faces Second Lawsuit As Meme Coin Scrutiny Heats Up
The post Pump.fun Faces Second Lawsuit As Meme Coin Scrutiny Heats Up appeared on BitcoinEthereumNews.com.
The woes for Pump.fun, the platform that allows the launch of meme coins on Solana, keep piling. A second lawsuit has been filed against the platform, claiming it engages in fraudulent activities and violated US securities laws. This development joins the list of growing scrutiny against meme coin projects, especially those accused of being pump-and-dump schemes. New Lawsuit Alleges Securities Violations The class-action complaint, filed by Burwick Law and Wolf Popper LLP, alleges that Pump.fun has been peddling unregistered securities masquerading as meme coins. In the complaint, it is alleged that the company misled investors into buying the tokens which had little to no intrinsic value to insiders who profited at their expense. It raises a host of regulatory questions regarding meme coin platforms – whether or not they fall under the jurisdiction of securities laws. **LAWSUIT ALERT** Burwick Law and @WolfPopperLLP have filed a second federal class action lawsuit on behalf of investors against the PumpdotFun platform. Full complaint available below. — Burwick Law (@BurwickLaw) January 30, 2025 The legal team behind the lawsuit argues that Pump.fun’s operations resemble classic financial fraud tactics. By allowing rapid creation and trading of meme coins, the platform may have facilitated schemes where early investors benefit at the cost of later entrants. This lawsuit follows a previous legal action that targeted Pump.fun for similar reasons, indicating a pattern of legal challenges for the platform. Total crypto market cap currently at $3.5 trillion. Chart: TradingView Regulators And Experts Weigh In Legal experts and regulators closely follow the development of the situation, with some using a comparison between the model of the given platform and multi-level marketing scams. The founder of Burwick Law, Max Burwick, has been vocal concerning the various risks involved in meme coin platforms, stating that they fall within a gray area…
Filed under: News - @ February 1, 2025 9:09 am