Pump.fun Hit With Class Action Lawsuit, Accused of Securities Violations
- Pump.fun faces a lawsuit for selling unregistered securities via meme coins.
- Platform’s business model accused of promoting “pump-and-dump” schemes.
- Previous legal issues include influencer marketing and misuse of live stream features.
Pump.fun, the memecoin platform, is now at the center of a legal dispute in the United States. A class action lawsuit was filed in the Southern District of New York. It accuses the platform’s operators of breaking U.S. securities laws.
The Allegations Against Pump.fun
The suit, filed by lead plaintiff Diego Aguilar, claims that Pump.fun and its UK-based operator, Baton Corporation Ltd, promoted and sold unregistered securities through its platform. The lawsuit accuses Pump.fun of being a “joint issuer” of meme coins created on its platform. The lawsuit includes three tokens, FWOG, FRED, and GRIFFAIN. Aguilar claims to have suffered financial losses due to these tokens.
He alleges that Pump.fun and its co-founders were involved in the creation, distribution, and ongoing operations of these tokens. According to Aguilar, they had control over their technical infrastructure, liquidity, pricing, and promotion.
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The post Pump.fun Hit With Class Action Lawsuit, Accused of Securities Violations appeared first on Coin Edition.
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Pump.fun Hit With Class Action Lawsuit, Accused of Securities Violations
- Pump.fun faces a lawsuit for selling unregistered securities via meme coins.
- Platform’s business model accused of promoting “pump-and-dump” schemes.
- Previous legal issues include influencer marketing and misuse of live stream features.
Pump.fun, the memecoin platform, is now at the center of a legal dispute in the United States. A class action lawsuit was filed in the Southern District of New York. It accuses the platform’s operators of breaking U.S. securities laws.
The Allegations Against Pump.fun
The suit, filed by lead plaintiff Diego Aguilar, claims that Pump.fun and its UK-based operator, Baton Corporation Ltd, promoted and sold unregistered securities through its platform. The lawsuit accuses Pump.fun of being a “joint issuer” of meme coins created on its platform. The lawsuit includes three tokens, FWOG, FRED, and GRIFFAIN. Aguilar claims to have suffered financial losses due to these tokens.
He alleges that Pump.fun and its co-founders were involved in the creation, distribution, and ongoing operations of these tokens. According to Aguilar, they had control over their technical infrastructure, liquidity, pricing, and promotion.
Related:…
The post Pump.fun Hit With Class Action Lawsuit, Accused of Securities Violations appeared first on Coin Edition.
Read More
Crypto Adoption Breaks Out of the Gen Z Chain