Investors sue memecoin launch platform Pump.fun

Investors have filed a class-action lawsuit in the U.S. District Court for the Southern District of New York against the British corporation Baton Corporation, which operates the memecoin launch platform Pump.fun. This was reported by the press service of the law firm Burwick Law.

The platform is accused of violating securities laws. The lead plaintiff, Diego Aguilar, stated that he lost a significant amount while trading FWOG, FRED, and GRIFFAIN tokens created on Pump.fun. Although memecoins are created by third parties rather than directly by the platform, the plaintiff insists that Pump.fun provides an automated launchpad for memecoins, acting as a "joint issuer."

The lawsuit claims that all tokens on Pump.fun should be classified as securities, as the company earned nearly $500 million in fees from them. Law firms Burwick Law and Wolf Popper LLP have accused the platform of fraud and misleading investors with false promises.

Previously, we reported that the revenue of the Pump.fun platform, which is based on Solana, reached $93 million last month, setting a new record for the company.