Memecoin generator Pump.fun was hit with another proposed class action lawsuit on Thursday, accusing the company and its executives of raking in nearly $500 million in fees while violating U.S. securities laws.

The suit, filed in the Southern District of New York (SDNY), hinges on the crypto industry’s biggest lingering question — when is a token a security? Though the suit alleges that every token created using Pump.fun’s platform is a security, and thus subject to U.S. securities laws, that’s far from a matter of settled law. Under the new Donald Trump Administration, the U.S. Securities and Exchange Commission (SEC) has indicated it’s changing tack on crypto regulation, creating a new crypto task force charged with establishing a clear regulatory framework for the industry.

The lead plaintiff in Thursday’s suit, Diego Aguilar, claimed to have lost money trading three Pump.fun-created memecoins in particular — FWOG, FRED and GRIFFAIN. Though Pump.fun does not itself create any of the tokens covered in the suit, the filing accuses the company of “orchestrat[ing] this scheme by providing automated tools that allow anyone to create and sell nearly worthless dig

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Author: Cheyenne Ligon

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