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Popular Solana-based meme coin launchpad Pump.fun has been hit with a class-action lawsuit alleging every token created on the platform is an unregistered security.On Jan. 30, Diego Aguilar <a href="https://www.courtlistener.com/docket/69593359/aguilar-v-baton-corporation-ltd-dba-pumpfun/" rel="noopener noreferrer nofollow">filed</a> a suit in a New York federal court against Pump.fun, which is allegedly run by the UK company Baton Corporation.&nbsp;<img class="alignnone" src="https://protos-media.s3.eu-west-2.amazonaws.com/wp-content/uploads/2024/11/27123549/Protos-Artwork-PumpfunIGX-1200x675.jpg" alt="pump.fun" width="1200" height="675"><h2 id="span-pump-fun-accused-of-creating-a-false-sense-of-urgency-for-new-tokens-span">Pump.Fun Accused Of Creating A False Sense Of Urgency For New Tokens</h2>In the filing, Aguilar said that the company used guerilla marketing tactics to create an artificial urgency for the “highly volatile” tokens created on the platform. This allegedly led to major losses for retail investors.“<a href="https://insidebitcoins.com/news/solanas-pump-fun-surpasses-3-3b-in-trading-volume-as-first-layer-2-solaxy-soars-past-16-3m-in-presale" rel="noopener noreferrer nofollow">Pump.Fun’s</a> core function is to work alongside influencers to co-issue and market unregistered securities,” Aguilar said in the filing. “Inherent to its operations are a novel evolution in Ponzi and pump-and-dump schemes.”<blockquote class="twitter-tweet">only possible on Solana <a href="https://t.co/I1Lc5GPFw1" rel="noopener noreferrer nofollow">pic.twitter.com/I1Lc5GPFw1</a>— pump.fun (@pumpdotfun) <a href="https://twitter.com/pumpdotfun/status/1880670766880145497?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 18, 2025</a></blockquote>Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale, who are all listed as Baton Corporation’s officers, were named in the complaint.<h2 id="span-burwick-law-also-takes-legal-action-against-pump-fun-span">Burwick Law Also Takes Legal Action Against Pump.fun</h2>The suit filed by Aguilar is not the only legal case against Pump.fun. Earlier this month, US law firm Burwick Law also revealed that it will be taking legal action against the platform. The firm said investors who engaged with Pump.fun tokens suffered losses buying into meme coins that used rug pulls and made “unfulfilled promises.”“In the past few months, Pump.fun has collected hundreds of millions of dollars in fees while illicit drug use, self-harm, racism, antisemitism, lewd acts, bestiality, violent and other antisocial acts were <a href="https://insidebitcoins.com/news/solana-meme-coin-launchpad-pump-fun-suspends-live-streaming-indefinitely-after-wave-of-abusive-content" rel="noopener noreferrer nofollow">displayed</a> on the platform,” the law firm stated.<h2 id="potential-winners">Potential Winners</h2>One potential winner from these actions is <a href="https://insidebitcoins.com/visit/pepeunchained" rel="noopener noreferrer nofollow">Pepe Unchained (PEPU)</a>, which is about to launch Pepe’s Pump Pad, a meme coin launchpad that is headed for a showdown with Pump.fun.PEPU has surged more than 11% in the past 24 hours and 53% in a week on news that its launchpad is about to go live.Another potential beneficiary is&nbsp;<a href="https://insidebitcoins.com/visit/memeindex" rel="noopener noreferrer nofollow">Meme Index (MEMEX)</a>, a new presale offering investors diversified meme coin baskets for the first time—helping reduce the kind of risk delivered in spades on Pump.fun.It offers four portfolios, ranging from the lowest-risk Meme Titan (which invests in top meme coins like Dogecoin and Shiba Inu) to the highest-risk Meme Frenzy, which focuses on new, high-risk, high-potential-return projects.MEMEX has raised more than $3.1 million in a little more than a month.<h3 id="span-related-articles-span">Related Articles:</h3><ul><li><a href="https://insidebitcoins.com/news/best-wallet-hurtles-past-250k-monthly-users-best-crypto-wallet-and-anonymous-bitcoin-wallet" rel="noopener noreferrer nofollow">Best Wallet Hurtles Past 250K Monthly Users&nbsp;</a></li><li><a href="https://insidebitcoins.com/news/pepe-unchained-soars-37-as-anticipation-intensifies-around-meme-coin-launchpad" rel="noopener noreferrer nofollow">Pepe Unchained Soars 37% As Anticipation Intensifies</a></li><li><a href="https://insidebitcoins.com/news/trending-meme-coins-to-watch-now-january-30-pepe-bonk-ai16z" rel="noopener noreferrer nofollow">Trending Meme Coins to Watch Now, January 30</a></li></ul>

Solana Meme Coin Launchpad Pump.fun Faces Class-Action Lawsuit Over Alleged Unregistered Securities, Ponzi Tactics

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