Key Insights:

X suddenly suspended Pump.fun, its co-founder and over 20 other crypto-related accounts on Monday, June 17, without prior notice.
Pump.fun has come under fire for helping pump-and-dump schemes in the past.
The reasons for the suspensions are still unclear, and many believe it to be related to alleged “liquidity harvesting” (insider trading) by Pump.fun.

X (formerly Twitter) has suspended the accounts of Pump.fun and its co-founder, Alon Cohen. 

This surprise move happened as part of a major sweep that saw over 20 crypto-related accounts taken offline without prior notice. The incident has created a great deal of speculation within the crypto community and raised questions about moderation, transparency, and the future of memecoin projects on X.

What is Pump.fun?

Pump.fun was designed to make launching memecoins fast and easy.  It allows users to create and trade tokens without needing to have much technical know-how. 

However, the simplicity and speed of the service have come under fire over the years, because critics claim it makes pump-and-dump schemes much easier.

Bad actors can more easily inflate prices artificially, while attracting more investors. When the project collects enough liquidity, the insiders eventually exit and leave other investors holding the bag.

The platform has made headlines in the past. For example, in January of this year, Pump.fun was hit with a class-action lawsuit that accused it of allowing just anyone to create unregistered securities. 

Plaintiffs alleged that the platform earned nearly $500 million in fees by doing this, and also allowed bad actors to create tokens with no real value.

The Sudden Ban

The X accounts of both Pump.fun and Alon Cohen now show the platform’s infamous suspension notice: “X suspends accounts which violate the X Rules.” 

And so far, no specific details have been shared. Nothing from X, and nothing from the affected parties. In addition to Pump.fun, accounts related to other crypto platforms like GMGN, BullX, Bloom Trading and the AI tool Eliza OS were also suspended. 

According to a list compiled by an X user named “Otto,” at least 20 crypto-related accounts have been affected in total. The lack of official explanations has left the community in the dark, and speculation has been running wild ever since.

IT’S NOT JUST PUMP FUN!

Major CT suspensions (Ongoing Tracker)

Here’s what we’ve got so far

GMGN-Linked Accounts@gmgnai @haze0x — Founder@arthur_gmgn — Co-founder@Ga__ke — Affiliate (?)@brc20niubi — Affiliate@Wolfy_XBT — Affiliate@0xcryptowizard — Affiliate… pic.twitter.com/u5WbYP3rJD

— Øtto (@0xottoman) June 16, 2025

Why Were These Accounts Suspended?

There are several theories about why these accounts were suspended, and one of the biggest ones involves the use of third-party APIs. 

For some context, X banned most third-party API access in early 2023, after complaints that many users misused them. The platform also wanted to drive more users to its paid in-house tools. 

However, these internal tools start at $60,000 per year and are more expensive than those offered by many smaller or startup projects.

Despite the ban, some believe that Pump.fun and others might have used these API tools anyway, to bypass the fees. This could have been what triggered X’s moderation systems and caused the ban.

Another theory is about “Liquidity Harvesting 2.0.” Think of this as an alleged method Pump.fun may have used to extract funds from retail users, and reallocate them to wallets controlled by insiders. 

Even though these speculations are unproven, many users noticed wallet patterns that they described as “yacht-shaped behavior.” For context, yacht-shaped behavior refers to sudden spending sprees crypto founders sometimes engage in, with funds that likely came from their insider gains.

The Crypto Community Reacts

Reactions from the crypto space have been mixed. For example, GMGN (one of the suspended platforms) issued a statement via Telegram, stating that it is “actively appealing” the suspension.

Meanwhile, Braden, who handles marketing for Pump.fun, posted on X (before the suspension) that the takedown was likely the result of “mass reporting.” In essence, the account may have been flagged repeatedly by competitors or bots without any clear rule-breaking.

While for many, the move was unjustified and overly aggressive, others believe it may be the beginning of a crackdown on memecoins in general. Overall, whether this is an isolated incident or the first wave of a larger crackdown remains to be seen. 

 

The post X Suspends Pump.fun, BullX, and More in Sudden Crypto Crackdown appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ June 17, 2025 6:19 pm