Amended Pump.fun Lawsuit Seeks $5.5 Billion in Recoupment and Claims RICO Violations

An amended class-action complaint filed in the US District Court for the Southern District of New York has accused the memecoin platform Pump.fun of operating as a “front-facing slot machine cabinet,” extracting approximately $5.5 billion from users through allegedly deceptive digital asset schemes that exploited memecoin volatility and hype.

Lawsuit Adds RICO Claims, Targets Blockchain Infrastructure Partners

Filed on [Insert Date – This should be added], the action names Pump.fun’s operator, pseudonymous “Bernie,” the parent company Baton Corp., and several blockchain infrastructure providers including Solana Labs, the Solana Foundation, and Jito Labs as defendants.

The filing alleges a coordinated enterprise functionally akin to an “unlicensed casino.” Plaintiffs claim Pump.fun offered no underlying project or product but rather facilitated a “fast-moving cycle of buying, dumping, and collapse,” mimicking a rigged slot machine where early dumps create artificial wins.

Visual representation often used by Pump.fun. Source: Pump.fun — *A recent post on X by Pump.fun*

In addition to fraud, the amended complaint escalates claims to include Racketeer Influenced and Corrupt Organizations Act (RICO) counts, aiding and abetting, civil conspiracy, and unjust enrichment. Plaintiffs seek rescission of all transactions on the platform and compensatory damages.

The complaint specifically accuses Solana ecosystem entities of enabling the scheme: “Solana Labs and the Solana Foundation provided the venue — the Solana blockchain itself — and monetized each wager through validator fees, block space sales, and SOL token appreciation.”

Jito Labs and Jito Foundation are accused of providing liquidity infrastructure that allegedly “extracted value via MEV to seed and otherwise profit from Pump.fun’s token tweets[marketing].”

Debunked: Pump.fun’s $500M presale funds are not locked

Pump.fun Token Depreciates Following Early Investor Sales

As the lawsuit progresses, Pump.fun’s native token PUMP has experienced downward pressure from its launch phase. Recently, two known early investor wallets, dubbed “PUMP Top Fund 1” and “Top Fund 2,” reportedly transferred nearly their entire ICO allocation (~$150 million) to major centralized exchanges, consuming as much as $160 million.

Nearly 60% of PUMP presale participants have liquidated their holdings, according to BitMEX analytics, easing fears of a broader meme token sell-off. Despite raising nearly $500 million and selling out within 12 minutes, analysts attribute ongoing price pressures to the largetoken initial unlock.

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