Pump.fun is facing a proposed class-action lawsuit filed by Diego Aguilar on January 30th in a New York federal court. The suit alleges that every token created on the platform is an unregistered security, generating nearly $500 million in fees. Fraudulent Marketing The complaint claims that Pump.fun, operated by the Baton Corporation, used aggressive marketing tactics to create artificial demand for volatile tokens, leading to significant losses for retail investors. It accuses the platform of engaging in Ponzi and pump-and-dump schemes and names Baton Corporation officers Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale in the lawsuit . Aguilar, who bought several meme coins on the platform, is suing on behalf of all investors in these unregistered security memecoins. The lawsuit seeks rescission of token purchases, damages for affected investors, and litigation costs, claiming violations of the Securities Act. More Problems Thus far, Pump.fun and Baton Corporation have not commented, and details on any kind of legal representation are presently unavailable. Earlier in January, law firm Burwick Law also announced legal action against Pump.fun, accusing it of causing investor losses through rug pulls and unfulfilled promises. The firm also criticized the platform for hosting harmful content, such as illicit drug use and racism. Still, Pump.fun recently saw a surge in usage, reaching a record $3.3 billion in weekly trading volume after launching Trump family-themed meme coins.
