Navigational Error Costs 'Whale' of PUMP Millions - Unraveling the Blunder
In a significant turn of events, Pump.fun, a popular cryptocurrency platform, is facing a class-action complaint in New York. The lawsuit, which was amended and consolidated as of late July 2025, alleges that Pump.fun and its partners have been running a scheme resembling a digital casino[1][2][3].
The amended complaint, filed in the Southern District of New York, accuses Pump.fun's operators, including its pseudonymous founder "Bernie," parent firm Baton Corp., and key infrastructure partners such as Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation, of operating like a rigged digital slot machine or unlicensed casino[1][3].
The lawsuit also names executives like Jito CEO Lucas Bruder and Solana Labs CEO Anatoly Yakovenko, alongside other key figures[4].
Key allegations include operating an unlicensed casino-like enterprise that profited from volatility and hype without investor disclosures or safeguards, functioning like a "front-facing slot machine cabinet." The complaint also accuses the platform of running an illegal "pump and dump" scheme selling unregistered securities and facilitating illicit activities due to a lack of compliance measures[1][3].
The amended complaint escalates claims by including violations under the Racketeer Influenced and Corrupt Organizations Act (RICO), fraud, aiding and abetting, civil conspiracy, and unjust enrichment. Plaintiffs seek cancellation of all Pump.fun transactions, monetary damages, rescission of token purchases, and litigation costs[1][2][4].
Meanwhile, in a separate incident, an investor quickly moved tokens from Binance to Bybit after the return from Binance, as Binance had not listed PUMP on spot markets, and the tokens were returned to the investor[5]. Two wallets tied to early investors sold 1.25 billion PUMP tokens for $3.81 million, with an average price of $0.00305. However, if sold today, these tokens would result in a loss of nearly $6 million from the peak value[6].
The transfer occurred when the price of PUMP was lower than the initial deposit value, with the tokens then worth $6.93 million, a decrease from the initial deposit value[7]. The price of PUMP dropped nearly 20% in 24 hours, falling to $0.003041, and trading volume reached $933 million in the 24-hour period[8].
It's important to note that during the presale, "Top Fund 1" and "Top Fund 2" had received over $150 million worth of tokens[9]. Most of the holdings from these funds have been sent to exchanges.
The case remains in the pre-trial phase with active motions and deadlines forthcoming. As the legal proceedings continue, the future of Pump.fun and its partners hangs in the balance.
[1] [News Source 1] [2] [News Source 2] [3] [News Source 3] [4] [News Source 4]
- Despite the ongoing legal battles, some crypto investors continue to trade cryptocurrencies, as illustrated by an investor moving tokens from Binance to Bybit.
- The amended complaint against Pump.fun accuses not only the platform and its pseudonymous founder "Bernie," but also infrastructure partners like Solana Labs, Jito Labs, and the Jito Foundation, of operating like a digital casino and engaging in unregistered securities trading.
- The blockchain-based finance landscape is marked by a lawsuit involving Pump.fun, which is accused of running an illegal pump-and-dump scheme and operating like a casino without necessary licensing or investor safeguards.
