pump.fun lawsuits

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pump.fun lawsuits
Image: official logo
lead case	Aguilar v. Baton Corporation Ltd, 1:25 cv 00880 (SDNY)
filed	January 2025
claims	Unregistered securities, RICO (alleged)
status	Motion to dismiss phase as of 2026

pump.fun and its founders face consolidated class action litigation alleging the sale of unregistered securities and racketeering, alongside a UK regulatory warning that led the platform to block British users.

Contents

1 The first class actions
2 Aguilar v. Baton Corporation
3 UK regulatory action
4 Significance
5 References

Since January 2025, pump fun and its parent company Baton Corporation Ltd have faced class action litigation in the United States and regulatory action in the United Kingdom. All claims described here are allegations; no court has found the defendants liable, and the company and its founders contest the claims.

The first class actions

On January 30, 2025, plaintiff Diego Aguilar, represented by Wolf Popper LLP, filed a proposed class action in the Southern District of New York alleging that tokens launched through pump.fun are unregistered securities under Sections 5 and 12(a)(1) of the Securities Act of 1933, and that the platform, which had collected nearly $500 million in fees through a mandatory 1 percent transaction fee, acted as an unregistered issuer and exchange. Early filings centered on tokens including PNUT, FWOG, FRED (First Convicted Raccoon) and GRIFFAIN. A second, related class action filed the same winter raised similar theories, and law firm commentary framed the pair as a test of whether meme coins can be securities.

Aguilar v. Baton Corporation

The cases were consolidated as Aguilar v. Baton Corporation Ltd, No. 1:25 cv 00880 (SDNY). An amended complaint dramatically widened the case: it named Baton Corporation and cofounders Noah Tweedale, Alon Cohen and Dylan Kerler (see pump fun founders), and added Solana Labs, the Solana Foundation, Jito entities and individual Solana executives including Anatoly Yakovenko and Raj Gokal. The complaint alleges a "Solana Pump.Fun Racketeering Enterprise" that ran what plaintiffs call a rigged meme coin marketplace while presenting it as fair and decentralized, seeking treble damages that plaintiffs' counsel valued at approximately $5.5 billion under RICO. In late 2025 a whistleblower publicized more than 5,000 alleged internal chat messages that plaintiffs say support claims of insider advantages and MEV related profits; the authenticity and significance of the material is disputed. A second amended consolidated complaint was filed on January 7, 2026, with defendants' motions to dismiss due January 23, 2026 and oppositions in February 2026. As of mid 2026 the case remained in the motion to dismiss phase, with no ruling on the merits.

UK regulatory action

On December 3, 2024 the UK Financial Conduct Authority issued a public warning that pump.fun "may be providing or promoting financial services or products without our permission" and was not authorized to operate in the United Kingdom. On December 6, 2024 pump.fun updated its terms and blocked all UK users. Cofounder Alon Cohen said the restriction was permanent and was the company's own decision rather than a direct order from the regulator.

Significance

The litigation is closely watched in the trenches because its central question, whether bonding curve meme coins sold through a launchpad are securities and whether a launchpad operator can be liable for them, would apply to the entire launchpad sector, including rivals like letsbonk fun. The company has continued operating, expanding and holding its PUMP ICO (from which US and UK buyers were excluded) while the cases proceed.

References

Category: Platforms