The problems for pump.fun, the platform that enables the start of Meme coins on Solana, continue to stack up. A second lawsuit was filed against the platform in which it involves fraudulent activities and violated the US laws of securities.
This development is followed by the list of growing examination against Meme-Münz projects, in particular those who are accused of being pump-and-dump systems.
New lawsuit claims securities violations
In the class complaint submitted by Burwick Law and Wolf Popper LLP, it is claimed that Pump.fun has not camouflaged securities as a meme coins.
In the complaint it is claimed that the company misled the tokens that had been a little or no intrinsic value for insiders who benefited at their expense. It throws a variety of regulatory questions about Meme -Coin platforms -regardless of whether they fall under the responsibility of the securities laws or not.
** Lament Alert **
Burwick law and @WolfPopperllp In the name of investors, submitted a second class action lawsuit against the Pumpdotfun platform.
Full complaint available below.
– Burwick Law (@burwicklaw) January 30, 2025
The legal team behind the lawsuit argues that Pump.funs business tactics are similar to classic financial fraud. With the quick creation and trade with Meme coins, the platform may have made it easier to make systems easier in which early investors benefit at the expense of later participants.
This lawsuit follows an earlier legal steps that pumped for similar reasons. Fun, which indicates a pattern of the legal challenges for the platform.
Supervisory authorities and experts weigh
Right-wing experts and supervisory authorities follow the development of the situation, with some use between the model of the specified platform and the marketing fraud with several levels.
The founder of Burwick Law, Max Burwick, was loud with regard to the various risks associated with Meme -Coin platforms, and explained that they fall into a gray area in which the upcoming enforcement will be very strict.
With upcoming legal announcements, I would like to set my personal position to exploit memecoins. Read it below. Please do not hesitate to share! pic.twitter.com/adndcqnrxh
– Max Burwick (@burwick_max) January 15, 2025
The cryptom market aims to reduce illegal financial activities, so that platforms such as Pump.fun may be put under pressure to follow current laws.
Investor protection groups have also searched for clearer rules for Meme coins as well as their status and classification according to the securities law. If Pump.fun is found guilty of having not sold registered securities, it can set a standard for other crypto websites.
Hype or market manipulation of Meme coins?
The lawsuit also indicates a more general topic: the debate about Meme coins. For some, these are the lighter, funny aspects of the cryptom market. For others, however, they create a way to mass manipulation in the markets.
Meme coins often see extremely rapid increases and falls, which leads to massive losses for late investors. Critics said that places like Pumpe.fun live from artificial hype instead of value.
Selected picture of CCN, Diagram by Tradingview