Pump.fun and several groups tied to the Solana
The case, filed by Burwick Law on July 23, targets Pump.fun and its partners, Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation.
According to the lawsuit, Pump.fun operated like a slot machine, which allowed people to create and trade tokens with no verification of their identity or the origin of the funds.
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The plaintiffs claimed that this system was built to favor bots and insiders, who had faster access to trades and a better chance of making a profit.
The complaint also points to features like bonding-curve pricing and wallet anonymity as tools that made the system feel like gambling.
The lawsuit estimates total losses between $4 billion and $5.5 billion. These figures are based on blockchain transaction records and the outcomes of trades made on Pump.fun and similar platforms.
More than a dozen individuals are named in the case, including leadership from all four organizations. The plaintiffs are bringing charges under the Racketeer Influenced and Corrupt Organizations (RICO) Act, which is often used in cases involving organized crime.
They are also accusing the defendants of wire fraud, false advertising, selling unregistered securities, and breaking New York consumer protection laws.
On July 8, Weiwei Ji, a Chinese national, objected to FTX’s request to block payments to users in countries with cryptocurrency restrictions. What did Ji say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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