Pump.fun postponed its $1 billion token sale again, now targeting mid-July without giving a clear reason.
The platform faces a class action lawsuit for alleged securities violations and market manipulation.
A cease and desist letter accuses Pump.fun of hosting memecoins with unauthorized copyrighted content.
Solana-based memecoin launch platform Pump.fun has postponed its token auction for the second time this year. As noted by Wu Blockchain, the sale, originally set for June 25, was meant to raise $1 billion at a $4 billion valuation. The company now expects the auction to take place in mid-July. No official explanation was provided for the delay. However, the timing aligns with a growing list of legal issues involving the platform.
https://twitter.com/WuBlockchain/status/1936055496743833965 Class Action Lawsuit Claims Market Manipulation
In January 2025, Pump.fun became the target of a class action lawsuit filed by Burwick Law. The complaint accused the platform of violating federal securities laws and manipulating token prices to favor insiders. The lawsuit claims that these actions caused significant investor losses.
According to court documents, Pump.fun allegedly structured launches in a way that allowed early participants to benefit at the expense of others. Attorney Max Burwick, who leads the law firm, described the platform as a “multi-level marketing-style scheme.”
He alleged that Pump.fun attracted users seeking fast profits and then exposed them to significant risks. The complaint details various memecoin launches that reportedly used misleading tactics and failed to provide adequate disclosures to buyers.
Copyright Infringement Complaints Add More Pressure
In February, the legal scrutiny expanded when Burwick Law and Wolf Popper LLP issued a cease and desist letter. The firms claimed that numerous memecoins hosted on Pump.fun were using copyrighted names and logos without permission. They cited examples of tokens copying well-known brands, raising concerns about unauthorized intellectual property use.
The letter demanded that the platform remove infringing tokens and take steps to prevent future violations. The legal teams argued that Pump.fun lacked proper review processes for the coins launched on its site. The cease and desist also mentioned the potential for reputational and financial harm to copyright holders. However, a report by Protos revealed that Pump.fun has raised its legal team with new lawyers to boost its chances against the imposed lawsuit.
Social Media Disruption Raises More Questions
As reported by CryptoNewsLand, on June 16, the official X accounts belonging to Pump.fun and its founder were suddenly suspended. The platform did not give any official reason to justify the suspension. The accounts were restored after some days without clarification.
Its move with other crypto-related accounts was also taken down at the same time, which begs the question of concerted enforcement efforts. It seems that Pump.fun has remained quiet against the legal proceedings and the suspensions of social media.
In the meantime, investors and developers are waiting to get additional information on the rescheduled auction. At this point no specific date has been announced despite the vague mid-July time frame. It is still not clear since legal processes are still on-going.
