Pump

Pump.fun

Solana

Kevin

Jito

A federal judge has allowed plaintiffs in the Solana (<a href="https://yellow.com/asset/sol">SOL</a>) “Pump.fun” class-action lawsuit to file a significantly expanded complaint after a confidential informant resurfaced with nearly 5,000 internal chat logs that may materially clarify how the alleged <a href="https://yellow.com/news/pumpfun-token-creation-reaches-25000-in-single-day-as-meme-coin-activity-returns">token-launch scheme operated.</a>
The <a href="https://x.com/BurwickLaw/status/2000635043421835390?s=20">ruling</a>, filed December 9 in the Southern District of New York, grants plaintiffs Diego Aguilar, Kendall Carnahan, and Michael Okafor permission to submit a Second Amended Complaint incorporating new evidence involving personnel from Pump.fun, Solana Labs, Jito Labs (<a href="https://yellow.com/asset/jto">JTO</a>), and other connected parties.
Yellow.com has reached out to Pump.fun for a comment.
<h2 id="whistleblower-reappears-with-new-evidence">Whistleblower Reappears With New Evidence</h2>
According to the filing, the informant, previously unreachable for months, re-contacted counsel in early September 2025.
The newly supplied logs reportedly contain contemporaneous discussions about transaction ordering, validator behavior, priority execution, token-launch mechanics, and coordination across entities named in the suit.
The court noted that these materials “bear directly on the operation and management of the alleged Pump Enterprise,” providing factual detail that was not available when earlier complaints were filed.
<h2 id="plaintiffs-allege-priority-access-and-artificial-pricing">Plaintiffs Allege Priority Access And Artificial Pricing</h2>
The updated claims maintain that Solana Labs’ validator framework and Jito Labs’ priority-execution tools allegedly enabled insiders to buy new tokens ahead of the general public on Pump.fun, a platform charging a 1% fee on all trades.
According to the plaintiffs, these tools allowed insiders’ transactions to be processed first, enabling them to acquire tokens at the lowest possible prices before automated bonding curves pushed prices upward as retail demand increased.
Also Read: <a href="https://yellow.com/news/exclusive-kevin-oleary-says-bitcoin-has-graduated-into-a-permanent-portfolio-asset-despite-longtime-critics-like-peter-schiff">Exclusive: Kevin O’Leary Says Bitcoin Has 'Graduated' Into A Permanent Portfolio Asset Despite Longtime Critics Like Peter Schiff</a>
Ordinary users, the complaint states, were repeatedly “funneled into buying at artificially inflated prices,” only to see tokens collapse after insiders exited.
The filing alleges this structure created a “rigged launch environment” characterized by low risk and near-guaranteed upside for insiders, while retail participants absorbed most of the downside.
<h2 id="court-says-amendments-are-justified-and-not-prejudicial">Court Says Amendments Are Justified And Not Prejudicial</h2>
Judge Colleen McMahon found that the plaintiffs acted promptly after receiving the new evidence and that the proposed amendments are neither transformative nor prejudicial.
Instead, they “align the counts” with existing RICO predicates and add two additional targeted claims under the Lanham Act and New York publicity-rights law.
The court emphasized that discovery has not yet begun and that defendants failed to demonstrate any undue prejudice resulting from the expanded pleading.
<h2 id="a-case-increasingly-focused-on-infrastructure-liability">A Case Increasingly Focused On Infrastructure Liability</h2>
Beyond token launches, the complaint now places greater scrutiny on Solana’s underlying infrastructure, including validators and transaction-ordering mechanisms, as potential contributors to alleged market manipulation.
If proven, this case could test how U.S. courts view the responsibility of blockchain infrastructure providers when their systems allegedly enable priority access or asymmetric information advantages during public token sales.
Read Next: <a href="https://yellow.com/news/kevin-oleary-says-institutions-will-only-buy-bitcoin-and-ethereum-once-us-clarity-act-passes">Exclusive: Kevin O’Leary Says Institutions Will Only Buy Bitcoin And Ethereum Once U.S. Clarity Act Passes</a>

Judge Approves Expansion Of Solana ‘Pump.fun’ Lawsuit After 5,000 Internal Chats Surface

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