The memecoin launchpad Pump.fun is under fire again — and this time, legal stakes are much higher. With a third class action lawsuit now in motion, growing concerns around insider manipulation, unsustainable tokenomics, and regulatory exposure are putting both traders and developers on high alert.
🔍 What’s Happening?
A newly amended class action lawsuit filed in the Southern District of New York accuses Pump.fun — the viral Solana-based meme coin launchpad — of orchestrating a "racketeering operation" that defrauded retail users through manipulated token launches, insider access, and systematic pump-and-dump schemes.
The legal filing also names major players like Solana Labs, the Solana Foundation, and Jito Labs, alleging a coordinated effort to profit from high-frequency launches of short-lived meme tokens.
📉 98% of Tokens Collapsed in 24 Hours
According to court documents, over 11 million tokens were launched via Pump.fun from January 2024 to mid-2025, with 98% of them failing within a single day. Plaintiffs argue these weren’t investment assets, but fast-moving “digital scratch tickets” built to churn fees — not deliver long-term value.
The result? A staggering $722M in revenue for Pump.fun and more than $3.1B collectively when including associated platforms like Jito and Solana, the lawsuit claims.
🎰 ‘Meme Coin Casino’ Mechanics
The lawsuit goes further, painting a picture of a "Memecoin Casino" built on automated bonding curves, early insider access, and gamified token launches:
“Pump.fun designed the gambling mechanics to be structurally exploitable… rigged like a slot machine. Early players win, latecomers lose. There’s no project, no product, no utility — just buying, dumping, and collapsing,” the lawsuit alleges.
Early token access was allegedly handed to bots and insiders, while regular users bore the risk — often ending up with worthless coins within hours.
📂 Not the First Time
This marks the third legal case filed against Pump.fun by the same legal team. Earlier lawsuits targeted specific token launches — including FWOG, Griffain, and Peanut the Squirrel — highlighting the same patterns of collapse, influencer-driven hype, and lack of transparency.
Now, with racketeering, wire fraud, and gambling violations added to the complaint, scrutiny is reaching a boiling point.
💰 Pump.fun Still Raking in Earnings
Despite legal heat, Pump.fun’s on-chain performance remains strong. As of July 24, Dune Analytics reports over $630M+ in total platform revenue — a sign that traders are still piling in, even as lawsuits stack up.
The platform has also reportedly expanded its legal team, signaling that it’s preparing for a long legal battle — and not planning to slow down operations just yet.
📈 What This Means for Traders and Builders
High Risk, High FOMO: Memecoin traders should evaluate the real utility behind launches, especially when platforms rely heavily on automated mechanics and lack transparency.
Legal Fallout Looms: Any project associated with or building on Pump.fun may face increased regulatory scrutiny or reputational risk.
Opportunity or Exit Signal? For speculators, rising volatility could offer short-term gains — but also heavy losses if investigations lead to platform shutdowns or user losses.
🚨 Final Word
The Pump.fun saga is more than just another memecoin drama — it’s a test case for how far decentralization and speculation can stretch before regulators step in.
As legal pressure builds, crypto users must decide: Is this just another FUD wave — or a warning signal before a major collapse?
📊 Stay tuned for real-time updates on the Pump.fun case and its potential impact on the broader crypto ecosystem.
