Solana Memecoin Platform- Legal Trouble for Pump.fun: Solana Platform Accused of Illegal Memecoin Marketing
Solana Memecoin Platform– A class-action lawsuit was filed against the Solana-based memecoin creation platform Pump.fun, claiming that every token created on the platform constitutes an unregistered security. The lawsuit, filed in New York federal court on January 30, alleges that Pump.fun made nearly $500 million in fees through the marketing and issuance of highly volatile tokens that led to significant losses for retail investors.
The complaint, brought by plaintiff Diego Aguilar, accuses Pump.fun and its parent company, Baton Corporation, of engaging in “guerrilla marketing” tactics to artificially create urgency around memecoins. The lawsuit suggests that these tactics are part of a broader pattern of Ponzi-like schemes and pump-and-dump operations. Aguilar specifically names the individuals behind Baton Corporation—Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale—as defendants in the case.
Platform’s Role in Token Creation Under Scrutiny
According to the lawsuit, Pump.fun facilitated the creation, marketing, and promotion of these tokens, which Aguilar claims were controlled by the platform in terms of technical infrastructure, liquidity, and pricing. The legal action accuses Pump.fun of violating the Securities Act by acting as an issuer and statutory seller of unregistered securities.
Damages Sought for Investors
Aguilar’s lawsuit demands rescission of all token purchases and seeks monetary damages for investors who suffered losses, as well as litigation costs. The platform, which saw a surge in usage after the release of Trump family-themed memecoins, has faced criticism from other legal entities as well. Earlier this month, Burwick Law firm announced it was taking action against Pump.fun for alleged rug pulls and unfulfilled promises tied to the platform’s tokens.
As of now, Pump.fun and Baton Corporation have not responded to requests for comment.
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.
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