Pump.fun Faces Lawsuit Claiming Memecoins are Securities
A proposed class-action lawsuit has been filed against Pump.fun, a memecoin creation platform on Solana, alleging that every token it helped create is an unregistered security.
According to the lawsuit, Pump.fun, which is allegedly run by the UK-based company Baton Corporation, used deceptive marketing tactics to create artificial demand for highly volatile tokens, resulting in significant losses for retail investors.
The suit, filed by Diego Aguilar in a New York federal court on Jan. 30, claims that Pump.fun’s main purpose is to collaborate with influencers to issue and promote unregistered securities, making it a modern version of Ponzi and pump-and-dump schemes.
The complaint also names three individuals, Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale, who are listed as officers of Baton Corporation on UK Companies House.
