PumpFun’s official accounts — and those of its founder — have already been banned on Twitter. But that’s just the beginning...
In a major blow to the memecoin world, not only was PumpFun taken down —
accounts of all major meme token launchpads and trading platforms have now been blocked.
A lawsuit has been filed against the project:
It all started with a complaint from an investor who lost $231 on the PNUT token.
But upon closer investigation, lawyers uncovered far more serious allegations:
🔥 Allegations against PumpFun:
* Pump & Dump schemes
* No KYC/AML compliance
* Marketing targeting minors and vulnerable individuals
* Allowing the creation of tokens with racist, antisemitic, and violent names
(including content promoting school shootings and Holocaust imagery)
🧑💻 The project is led by three co-founders:
* Noah Tweedale (CEO)
* Alon Cohen (COO)
* Dylan Kerler (CTO)
PumpFun is accused of creating an “ecosystem of fraud” and pocketing millions in fees.
📜 The lawsuit also claims the project violated the Howey Test:
* Investors expected profits
* Token value relied heavily on project marketing
* No actual utility — just speculation
If the founders lose in court, they could face:
* Massive fines
* Lifetime bans from financial markets
* Criminal charges for securities fraud
💸 Estimated penalties: $500 million
If the case goes to trial, it could become the most high-profile memecoin lawsuit in history, and may trigger stricter regulation across the entire crypto space.