Meme Coin Platform 'PumpFun' Faces Class Action Lawsuit for Securities Law Violation in the US
Summary
- It was reported that 'PumpFun' is embroiled in a class action lawsuit for violating US securities laws, with approximately $500 million in fees being questioned.
- The main issues of the lawsuit are the sale of unregistered securities and allegations of a Pump & Dump scheme by PumpFun.
- The lawsuit is a result of claims that the founders of PumpFun manipulated the market, causing numerous victims.
The meme coin issuance platform 'PumpFun' has been embroiled in a class action lawsuit for alleged violations of US securities laws.
According to industry sources on the 31st (local time), PumpFun users filed a lawsuit against PumpFun's parent company 'Barton Corporation' and three founders in the Southern District Court of New York. The plaintiffs claim that PumpFun systematically planned a 'Pump & Dump' scheme, promoting and selling unregistered securities to collect approximately $500 million (about 680 billion KRW) in fees.
Additionally, participants in the lawsuit criticized that the founders of PumpFun manipulated the market with a structure similar to a Ponzi scheme, packaging it as a legitimate investment opportunity through aggressive marketing, resulting in numerous victims.
Doohyun Hwang
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