Meme coin launchpad Pump.fun and its founders are once again under scrutiny — and not in a good way.
A newly amended class action lawsuit is ramping up pressure on the Solana-based platform, accusing it of running an illegal operation that allegedly exploited retail traders through manipulated token launches and insider trading schemes.
Filed in the Southern District of New York, the lawsuit alleges that Pump.fun, its founders and affiliates — along with Jito Labs, Solana Labs, and the Solana Foundation — orchestrated an elaborate racketeering scheme. The complaint claims they used flashy marketing tactics, automated bonding curves, and bots to systematically exploit users.
Lawsuit Claims Pump.fun’s ‘Memecoin Casino’ Was a Pump-and-Dump Scheme
According to the lawsuit, more than 11 million tokens were launched on Pump.fun between January 2024 and mid-2025 — with over 98% of them collapsing within 24 hours. Plaintiffs argue these weren’t genuine investments but digital scratch-off tickets, engineered to generate transaction fees rather than long-term value.
The platform allegedly raked in over $722 million in fees from this activity. When factoring in revenues attributed to Solana and Jito Labs, the total linked to the scheme reportedly exceeds $3.18 billion. Plaintiffs claim all involved parties collaborated to build what they describe as the “Meme Coin Casino,” where token launches operated like slot machines and early access was reserved for bots and insiders.
“Pump.fun designed the gambling mechanics to be structurally exploitable, and Jito Labs served the role of rigging the games,” read the filing. 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 latest amendments build on complaints filed earlier this year.
Older lawsuits, same story
As previously reported by crypto.news, Pump.fun is already facing two separate lawsuits filed by the same legal team, each accusing the platform of a consistent pattern of fraud and misconduct.
Those earlier cases focused on tokens such as FWOG, Griffain, and Peanut the Squirrel — all of which were launched on Pump.fun before quickly collapsing. Plaintiffs alleged the platform partnered with influencers and leaned heavily on meme-driven marketing to fuel speculative hype, all while quietly extracting hundreds of millions in trading and launch fees.
The latest lawsuit builds on those claims, introducing new charges including racketeering, wire fraud, and gambling law violations. It adds to the mounting scrutiny surrounding Pump.fun, especially amid controversy over its recent native token launch and allegations of insider dumping.
Yet despite the growing legal heat, Pump.fun continues to pull in significant revenue. As of July 24, data from Dune Analytics shows the platform has earned more than $630 million in total.
