Burwick Law and Wolf Popper LLP announced today that it has expanded its lawsuit against Pump.fun, a meme coin platform on Solana, claiming it ran a $1.5 billion fraud. The updated complaint, filed in the U.S. District Court for the Southern District of New York, now includes Solana Labs, Solana Foundation, Jito Labs, and Jito Foundation as defendants.
Solana and Jito Labs Stand Accused
The lawsuit claims that Pump.fun operated a “digital casino” using its bonding curve model, making $722.85 million in revenue. It states that Solana’s blockchain and Jito’s tools helped enable this scheme, which did not protect investors or follow regulations.
The plaintiffs say the defendants facilitated money laundering, including actions linked to North Korea’s Lazarus Group, which allegedly used Pump.fun to launder money from a $1.4 billion hack of Bybit. The complaint also states that meme master promoted tokens related to hate speech and violence to increase trading volume. Users may have lost between $4 billion and $5.5 billion, showing serious financial damage.
The updated lawsuit combines earlier claims, including one from PNUT memecoin investors, and is being overseen by Judge Colleen McMahon. The crypto vortex’s legal team, helped by Brown Rudnick attorneys, faces pressure as this case shines a light on decentralized finance platforms.
Growing Issues for Pump.fun
The legal issues affecting Pump.fun coincide with its PUMP token reaching a record low, showing growing investor dissatisfaction. The PUMP token launched on July 12, 2025, and raised $500 million in just 12 minutes during its initial coin offering (ICO), pushing its market cap up to $2 billion.
Since then, the token’s value has dropped significantly, with social media posts showing community frustration over a delayed airdrop. In a recent interview, the platform’s co-founder revealed that there will be no airdrop “in the near future.”
The expanded lawsuit against Pump.fun and its partners could change the crypto industry and may lead platforms to follow stricter rules. As PUMP’s token value drops due to a delayed airdrop and community criticism, the crypto market faces more regulatory scrutiny.
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