CryptoMediaClub
Thursday, April 16, 2026
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home All news

Pump.fun Accused of Running ‘Unlicensed Casino’ in $5.5B Class Action Lawsuit

24.07.2025
A A
0
118
VIEWS
ShareShare

Solana-based memecoin platform Pump.fun is facing a consolidated class action lawsuit alleging that it operates an illegal “Meme Coin Casino,” which has inflicted estimated losses of between $4 billion and $5.5 billion on retail traders while generating over $722 million in revenue.

The lawsuit, filed in the United States District Court for the Southern District of New York, targets the Pump.fun operator, Baton Corporation, its founders Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale, as well as executives from Solana Labs, the Solana Foundation, and Jito Labs.

Pump.fun Accused of Running 'Unlicensed Casino' in $5.5B Class Action Lawsuit
Source: Court Document

Alleged Crime Empire

Plaintiffs Diego Aguilar, Kendall Carnahan, and Michael Okafor allege the defendants formed a “Pump Enterprise” that operates as a coordinated racketeering scheme under the Racketeer Influenced and Corrupt Organizations Act.

The complaint describes Pump.fun as the “front-facing slot machine cabinet” where users deposit SOL currency for unpredictable token outcomes.

The platform allegedly allows minors to engage in speculative trading without requiring age verification or Know Your Customer (KYC) screening.

Jito Labs is accused of “rigging the games” by monitoring profitable transactions and sending them to the highest bidders through Maximal Extractable Value bundling.

Solana Labs and the Solana Foundation allegedly provide the blockchain infrastructure and monetize each wager through the sale of block space and validator fees.

The lawsuit claims the enterprise promoted a deceptive “fair launch” narrative while allowing insider front-running through Jito bundles.

The platform faces additional allegations of facilitating intellectual property theft, including tokens that impersonate publicly traded companies like Apple, Tesla, and Meta, as well as celebrity names without authorization.

The Lazarus Group, a sanctioned cybercrime unit, allegedly used Pump.fun to launder $1.08 million from cryptocurrency theft.

Platform’s Financial Success Built on User Losses and Regulatory Violations

According to a report that Cryptonews covered earlier in June, Pump.fun was accused of extracting $741 million in fees from users since May 2024, selling approximately 4.1 million SOL tokens through the Kraken exchange.

Pumpfun(@pumpdotfun), recently suspended by X, has sold a total of ~4.1M $SOL($741M) at an average price of ~$180 since May 19, 2024.
264,373 $SOL was sold for 41.64M $USDC at $158.
3.84M $SOL($699M) was deposited to #Kraken at $182. pic.twitter.com/LB80CZgnUB

— Lookonchain (@lookonchain) June 17, 2025

Meanwhile, 99.6% of its 13.55 million trader addresses have failed to realize profits exceeding $10,000.

The platform collects a 1% transaction rake on every trade and recently introduced a 0.05% revenue-sharing model for token creators.

Court documents reveal Pump.fun earned over $400 million in fee revenue during 2024 alone from the alleged gambling enterprise. Jito Labs captured over $633 million in user-paid tips, becoming one of the most profitable entities in the Solana ecosystem.

The company builds the “Jito-Solana Block Engine” that sells preferential block-inclusion rights and captures MEV on behalf of Solana stakers.

Solana Labs and the Solana Foundation saw a substantial financial windfall as SOL’s price surged over 1,000% from 2022 lows by late 2024.

Both entities control large SOL reserves and operate validators, earning considerable rewards from increased blockchain activity.

The lawsuit identifies 20 specific “Pump Tokens” as unregistered securities, including StakeCoin, QuStream, DeepCore AI, and Apex AI.

⚖https://t.co/BB5leCKHRh allegedly sold unregistered securities disguised as meme tokens.#Pump.fun #memecoins #UnregisteredSecuritieshttps://t.co/gNnyRynRWx

— Cryptonews.com (@cryptonews) January 31, 2025

These tokens allegedly promised “real-world utility and value tied to future project success” without SEC registration or risk disclosures. Lead plaintiff Michael Okafor lost approximately $242,076 when his purchased tokens collapsed.

The platform processes over $66 billion in cumulative trading volume while launching an estimated 27,305 new tokens daily.

Legal Battles Escalate as Token Launch Fails to Meet Expectations

Pump.fun’s native PUMP token launched in July 2025 but crashed 30% within 24 hours from pre-market highs of $0.0072 to $0.005 amid aggressive whale shorting.

The token has lost nearly 50% of its value since launch, falling short of community expectations.

Founder Alon Cohen confirmed during a recent livestream that no immediate token airdrop is planned, causing PUMP to drop over 14% in 24 hours.

📈 https://t.co/45JfH1EnrU's native PUMP token declined 14% in the last 24 hours and plummeted more than 40% in the last 7 days.#Pump.Fun #PUMPtoken #AlonCohenhttps://t.co/F1D08oREbp

— Cryptonews.com (@cryptonews) July 24, 2025

The token currently trades at $0.0031, with multiple presale investors dumping their positions due to losses exceeding $1 million.

X platform suspended Pump.fun’s official account and Cohen’s personal account in June 2025, raising questions about potential SEC investigations or securities law violations. The platform has also faced multiple lawsuits alleging violations for selling unregistered securities disguised as meme tokens.

Competitor LetsBonk has captured a sizable market share, achieving a daily share of 44.87% compared to Pump.fun’s 43.73%.

Plaintiffs seek class certification, compensatory damages, treble damages under RICO violations, appointment of a federal equity receiver, and permanent injunctions preventing defendants from operating similar platforms without required licenses and compliance controls.

The post Pump.fun Accused of Running ‘Unlicensed Casino’ in $5.5B Class Action Lawsuit appeared first on Cryptonews.

Share9Tweet6ShareSharePin2

Related Posts

Ethereum Price Prediction: ETH USD is 2% Between Make or Break
All news

Ethereum Price Prediction: ETH USD is 2% Between Make or Break

16.04.2026
0

Ethereum price is sitting directly on its 100-day EMA, a level that, even by any prediction standards, has separated bull...

Read moreDetails
Bitcoin Price Prediction: Goldman Sachs Into Bitcoin, But Can Price Break $90K

Bitcoin Price Prediction: Goldman Sachs Into Bitcoin, But Can Price Break $90K

16.04.2026
Ethereum Price Prediction: ETH Records 4 Consecutive Days of ETF Inflows Despite Rejection – Analyst Calls for $2,900

Ethereum Price Prediction: ETH Records 4 Consecutive Days of ETF Inflows Despite Rejection – Analyst Calls for $2,900

16.04.2026
BTC USD Tops $76,000 as Bitcoin Quantum Security Debate Intensifies

BTC USD Tops $76,000 as Bitcoin Quantum Security Debate Intensifies

16.04.2026
Tron Price Prediction: TRX With 2nd Biggest Crypto Revenue in Q1 Records $5B TVL

Tron Price Prediction: TRX With 2nd Biggest Crypto Revenue in Q1 Records $5B TVL

16.04.2026
Load More
Next Post
Lido faces three-year low in Ethereum staking market amid stETH depeg turmoil

Lido faces three-year low in Ethereum staking market amid stETH depeg turmoil

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Solana (SOL) Eyes $20 After 5% Daily Jump, Bitcoin (BTC) Maintains $30K: Weekend Watch

3 years ago
Crypto payment firm Alchemy Pay wins money transmitter license in US

Crypto payment firm Alchemy Pay wins money transmitter license in US

3 years ago
India Arrests Suspect Linked to Myanmar Crypto Scam Compounds

India Arrests Suspect Linked to Myanmar Crypto Scam Compounds

3 weeks ago
DeFi Ecosystem Saw Significant Growth of Restaking Sector

DeFi Ecosystem Saw Significant Growth of Restaking Sector

2 years ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Bitcoin surges on $650 million short squeeze, passing $76,000 as US inflation numbers fuels risk asset rally

Ethereum Price Prediction: ETH Records 4 Consecutive Days of ETF Inflows Despite Rejection – Analyst Calls for $2,900

Bitcoin surges on $650 million short squeeze, passing $76,000 as US inflation numbers fuels risk asset rally

BTC USD Tops $76,000 as Bitcoin Quantum Security Debate Intensifies

Bitcoin surges on $650 million short squeeze, passing $76,000 as US inflation numbers fuels risk asset rally

Tron Price Prediction: TRX With 2nd Biggest Crypto Revenue in Q1 Records $5B TVL

Trending

Ethereum Price Prediction: ETH USD is 2% Between Make or Break
All news

Ethereum Price Prediction: ETH USD is 2% Between Make or Break

16.04.2026
0

Ethereum price is sitting directly on its 100-day EMA, a level that, even by any prediction standards,...

Bitcoin surges on $650 million short squeeze, passing $76,000 as US inflation numbers fuels risk asset rally

16.04.2026
Bitcoin Price Prediction: Goldman Sachs Into Bitcoin, But Can Price Break $90K

Bitcoin Price Prediction: Goldman Sachs Into Bitcoin, But Can Price Break $90K

16.04.2026

Bitcoin surges on $650 million short squeeze, passing $76,000 as US inflation numbers fuels risk asset rally

16.04.2026
Ethereum Price Prediction: ETH Records 4 Consecutive Days of ETF Inflows Despite Rejection – Analyst Calls for $2,900

Ethereum Price Prediction: ETH Records 4 Consecutive Days of ETF Inflows Despite Rejection – Analyst Calls for $2,900

16.04.2026
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz