Lawsuit Filed Against Meme Token Factory Pump.fun

Investor Diego Aguilar has filed a class-action lawsuit against the operator of the Solana-based meme coin launch platform Pump.fun, Baton Corporation.

The plaintiff also named the firm’s founders, Alon Cohen, Dylan Kerler, and Noah Tweedale, as defendants.

Aguilar accused the project of selling unregistered securities in the form of tokens. Other allegations include facilitating Ponzi schemes and Pump & Dump activities.

The investor claims to have suffered losses from investments in at least three tokens — FRED, FWOG, and GRIFFAIN. According to him, the platform promoted these assets as having the potential for “exponential” returns.

Pump.fun allegedly targeted its marketing efforts at young, inexperienced users, using social media campaigns on platforms like TikTok. Narratives about FOMO and “thousandfold profits” were employed, the investor noted.

He believes the platform facilitated schemes like Pump & Dump while ignoring KYC/AML measures.

The lawsuit is backed by the New York-based law firm Burwick Law. Previously, it announced the filing of a class-action complaint against Pump.fun on behalf of investors who lost “significant sums.”

In January, the platform marked its first anniversary. Since its launch, the total revenue from platform fees has reached $431 million.