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Pump fun Under Fire: Account Suspended Amid $500M Lawsuit
Pump fun and Founder Banned from X – In a surprising enforcement wave, social media platform X (formerly Twitter) has suspended the accounts of memecoin platform Pump fun and its co-founder Alon Cohen, along with at least 19 other crypto-related profiles, sparking concern and speculation within the digital asset community.
On Monday, Pump fun’s official X account, as well as Cohen’s personal profile, were shown as suspended, with only X’s standard message stating: “X suspends accounts which violate the X Rules.” No specific reason has yet been publicly provided by X. According to a list compiled by the X user “Otto,” accounts linked to GMGN, BullX, Bloom Trading, and AI-based crypto tool Eliza OS were also affected.
Speculation Points to API Policy Violations
Multiple X users have suggested the suspensions may be related to violations of X’s third-party API policy. Since January 2023, X has restricted API usage, offering its proprietary API subscription with a starting cost of $60,000 annually. Some speculate that platforms may have attempted to bypass these fees using unauthorized APIs, although this remains unconfirmed.
Platforms Respond to Account Bans
GMGN, one of the affected platforms, issued a statement on Telegram saying it is “actively appealing the decision” and is in “close communication with X to expedite a resolution.” Others, like Pump fun marketing staffer “Braden”, attributed the suspension to potential mass reporting attacks, calling it “probably the mass reporting bs.”
Legal Troubles Mount for Pump fun
The crackdown comes amid legal challenges for Pump fun. In January, the platform was hit with a class-action lawsuit, alleging it facilitated the creation of unregistered securities through memecoins and collected nearly $500 million in platform fees. The platform has faced criticism for enabling pump-and-dump schemes, though it remains popular for its ease of launching speculative tokens.
While the precise cause of the suspensions remains unclear, the incident underscores growing tensions between social media platforms and crypto startups, particularly in areas involving automated engagement tools and regulatory scrutiny.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
