A new class action lawsuit claims that Solana-based meme coin factory Pump.fun operated an illegal securities exchange by providing automated tools that helped creators launch over 50,000 unregistered tokens, potentially exposing the $50 billion meme coin market to heightened regulatory scrutiny.

Filed in New York’s Southern District Court, the complaint alleges that Pump.fun’s U.K.-based parent company Baton Corporation collected nearly $500 million through a mandatory 1% fee over every transaction while enabling widespread securities law violations.

Pump.fun co-founder and COO Alon Cohen declined to comment after Decrypt reached out with questions on how they plan to engage with the suit.

The two other co-founders, CTO Dylan Kerler and CEO Noah Tweedale, have not responded to Decrypt at press time.

What is this all about?

The lawsuit, Aguilar v. Baton Corp. Ltd., involves three tokens: First Convicted Raccoon (FRED), FWOG, and GRIFFA

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Author: Vince Dioquino