Solana Meme Coin Creation Protocol 'Pump.fun' Faces Potential Lawsuit... "Victims Being Recruited"

Uk Jin

Summary

Pump.fun users have announced that they are preparing a class-action lawsuit.
It was reported that a majority of platform users suffered from illicit profit-taking.
Criticism has been raised that they earned significant fees from various antisocial behaviors.

The Solana (SOL)-based meme coin creation protocol Pump.fun is facing the threat of a class-action lawsuit.

On the 15th (local time), the cryptocurrency-focused media outlet BeInCrypto reported that some Pump.fun users have engaged the law firm Berwick Law to prepare a class-action lawsuit.

Pump.fun was the most popular platform among protocols within Solana last year. However, it has consistently been the subject of controversy. Pump.fun was a protocol that facilitated the easy issuance of meme coins for existing users. However, problems arose after it began offering live streaming features. During live streams, numerous users promoted their issued meme coins in unfair ways and illicitly profited, resulting in a large number of victims.

Berwick Law pointed out, "Over the past few months, Pump.fun has allowed illegal drug use, self-harm, racism, anti-Semitism, obscene acts, bestiality, violence, and other antisocial behaviors to occur on the platform, raking in hundreds of millions of dollars in fees." They added, "Additionally, they turned a blind eye to over 60% of users incurring losses."

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