An amended class-action complaint filed in the Southern District of New York alleges that memecoin platform Pump.fun operates as a “front-facing slot machine cabinet” in an enterprise that extracted more than $5.5 billion from users through deceptive digital asset schemes.
The lawsuit, filed on Wednesday, names Pump.fun’s operators, including pseudonymous developer Bernie, parent company Baton Corp., and infrastructure partners such as Solana Labs, the Solana Foundation, Jito Labs and the Jito Foundation as defendants.
The case accuses them of engaging in a coordinated enterprise functionally similar to an “unlicensed casino,” relying on volatility and hype rather than disclosures or investor safeguards.
“The structure mimics a rigged slot machine where the first few players win by dumping their tokens on later ones. There is no underlying project, product, or revenue — only a fast-moving cycle of buying, dumping, and collapse,” the filing alleges.
Related: Debunked: Pump. fun’s $500M presale funds are not locked
Amended Pump.fun lawsuit adds more claims
The amended complaint also escalates the scope of the alleged misconduct. It includes Racketeer Influenced and Corrupt Organizations Act (RICO) claims, fraud, aiding and abetting, civil conspiracy and unjust enrichment.
Plaintiffs seek rescission of all Pump.fun transactions and compensatory damages for purported harm caused by what they call a “rigged” system.
The lawsuit also mentions the role of Solana-affiliated entities in facilitating the scheme. “Solana Labs and the Solana Foundation provided the venue — the Solana blockchain itself — and monetized each wager through the sale of block space, validator fees and SOL token appreciation,” the plaintiffs argue.
Furthermore, the filing points out the role of liquidity infrastructure provided by Jito Labs and Jito Foundation, which allegedly earned revenues through maximum extractable value strategies tied to memecoin trading on Pump.fun.
The lawsuit was originally filed in January this year. At the time, it claimed that Pump.fun used guerrilla marketing to generate artificial urgency for “highly volatile” tokens from which it made nearly $500 million in fees.
Cointelegraph reached out to Alon Cohen on X for comment but had not received a response by publication.
Related: 60% of PUMP presale participants sold or transferred to CEXs
Pump.fun token tanks as early investors sell
On Tuesday, two major early investors in Pump.fun’s PUMP token offloaded over $160 million worth of tokens to exchanges, triggering fears of a broader sell-off.
Wallets dubbed “PUMP Top Fund 1” and “Top Fund 2” had acquired $150 million worth of tokens during the private sale but have since deposited nearly their entire holdings to exchanges, with only $29.5 million remaining in one wallet.
Nearly 60% of PUMP presale participants have sold or transferred their tokens, according to BitMEX. Analysts say the token’s large initial unlock likely contributed to downward price pressure, despite its strong start. Pump.fun raised nearly $500 million in its ICO, selling out in just 12 minutes.
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