The woes for pump.fun, the platform that allows the launch of meme coins on Solana, continues to stack. A Other lawsuit has been submitted against the platform and claims that it conducts fraudulent operations and violated US securities laws.
This development agrees with the list of growing review against MEME coin projects, especially those accused of being a pump-and-dummy system.
New action claims securities violations
Class cutting, submitted by Burwick Law and Wolf Popper LLP, it claims Pump Has tangled unregistered securities masked as a MEME coin.
In the complaint, it is said that Companies misled investors Buying tokens that had little to no inherent value for insiders who earned at their expense. It raises a number of regulatory questions about MEME coin platforms – whether they fall under jurisdiction for securities laws or not.
** atmosphere warning **
Burwick team and @Wolfpopperllp has submitted a second legislation on federal class for investors against the Pumpdotfun platform.
Full complaints available below.
– Burwick Law (@burwicklaw) January 30, 2025
The legal team behind the mood claims that Pump.Fun’s operations are similar to classical financial fraud. By allowing rapid creation and trade with Meme coinsThe platform may have facilitated systems where early investors benefit at the expense of later participants.
This mood follows a previous legal action as a targeted pump. Fun for similar reasons, which indicates a pattern of legal challenges for the platform.
Supervisory authorities and experts weigh in
Legal experts and supervisory authorities closely follow the development of the situation, with some who use a comparison between the model for the given platform and several levels marketing.
The founder of Burwick Law, Max Burwick, has been vowel if the various risks involved in MEME coin platforms and say they fall within a gray area where upcoming enforcement will be very strict.
With imminent legal announcements, I want to make my personal position on the use of Memecoin’s publicly available. Read it below. Don’t hesitate to share! pic.twitter.com/adndcqnrxh
– Max Burwick (@burwick_max) January 15, 2025
The crypto market aims to reduce illegal financial operations, so platforms such as pump.Fun can face a lot of pressure to comply with current laws.
Investors’ protection groups have also sought clearer rules on MEME coins and their status and classification according to the securities legislation. If pump.fun is guilty of selling unregistered securities, it can set a standard for other crypto pages.
Hype or market manipulation of meme -coins?
The atmosphere also points to a more general question: the debate on meme coins. For some, these are the lighter, fun aspects of the crypto market. But for others, they create a path to mass manipulation in the markets.
Meme coins often see extremely rapid climbs and falls, which leads to huge losses for late investors, with critics that say that places like pump. Fun live on artificial hype instead of value.
Image from CCN, Chart from TradingView
