Pumpfun sued for $5.5B over claims it ran a memecoin casino disguised as a platform.

Pump.fun Sued Over $5.5B Memecoin Scheme, Faces RICO And Fraud Claims - FinanceFeeds

The team behind memecoin platform Pump.fun is facing an expanded class-action lawsuit that accuses it of operating a digital asset scheme resembling a rigged

financefeeds.com

Pump.fun is in hot water after a class-action suit landed in the Southern District of New York, accusing the memecoin platform of running a $5.5 billion “unlicensed casino” on Solana. The updated complaint targets pseudonymous dev “Bernie,” parent Baton Corp., Solana Labs & Foundation, and Jito Labs & Foundation with RICO, fraud, aiding-and-abetting and conspiracy claims—arguing that Pump.fun’s hype-driven token cycles mimicked a rigged slot machine where early players dump on later ones and everyone else gets left holding the bag.

On top of demanding all Pump.fun transactions be voided and damages paid, plaintiffs say Solana quietly profited via validator fees and block-space sales, while Jito cashed in on MEV strategies. The timing couldn’t be worse: two of Pump.fun’s biggest backers just offloaded $160 million in tokens, BitMEX data shows 60% of presale participants have already sold or moved their holdings, and a once-red-hot $500 million ICO is now in full-blown sell-off mode.