An amended class action complaint filed in the Southern District of New York claims that MemeCoin platform Pump.Fun has extracted more than $5.5 billion from users and more than $5.5 billion through a digital asset scheme.
The lawsuit was filed Wednesday and named the accused infrastructure partners, including Pump.Fun operator, pseudonym developer Bernie, parent companies Baton Corp., Solana Labs, The Solana Foundation, Jito Labs and Jito Foundation.
The case accused him of relying on volatility and hype, not disclosure or investor protection, and spurring companies that are functionally similarly coordinated to “unlicensed casinos.”
“This structure mimics a rig-equipped slot machine where the first few players win by dumping the tokens on later tokens. There is no underlying project, product or revenue. Only a rapid cycle of purchase, dumping and collapse.”
Related: Expose: Pump. Fun’s $500 million pre-sale fund is not locked
Amended pump.fun lawsuit adds more claims
The revised complaint also escalates the scope of suspicious misconduct. This includes the claims of the Racketeer affected and corrupt organizational law (RICO), fraud, support and betting, citizen conspiracy and unjust enrichment.
The plaintiffs seek to withdraw compensation damages that have been harmed by all pump.fun transactions and what is called “equipped” systems.
The lawsuit alleges that Solana-related entities played a role in promoting the scheme. “Solana Labs and The Solana Foundation provided venues that are the Solana Blockchain itself, monetising each bet through block space, validator fees and appreciation sales of Sol tokens,” the plaintiffs allegedly argued.
Additionally, the filing points to the role of liquidity infrastructure provided by Jito Labs and the Jito Foundation.
The lawsuit was originally filed in January this year. At the time, Pump.Fun claimed that he used guerrilla marketing to create the artificial urgency of “very volatile” tokens, earning nearly $500 million in fees from there.
Cointelegraph contacted Alon Cohen, co-founder of Pump.fun, to comment on X, for comment, but was not responded to a publishing response.
Related: 60% of participants in Pump Presale were sold or transferred to CEXS
When early investors sell, Pump.Fun token tank
On Tuesday, Pump.Fun’s pump tokens were offloaded and exchanged over $160 million tokens, causing fear of wider sales.
Wallets called “Pump Top Fund 1” and “Top Fund 2” acquired $150 million worth of tokens during their private sale, but then deposited almost entire holdings in exchange.
According to Bitmex, almost 60% of Pump Presale participants sell or forward tokens. Analysts say the massive early lock on tokens likely contributed to downward price pressure despite its strong start. Pump.Fun raised nearly $500 million from ICOs and sold out in just 12 minutes.
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