Burwick Law, representing plaintiffs in a class action lawsuit against Pump Fun, filed an amended complaint in the U.S. District Court for the Southern District of New York. This followed Judge Colleen McMahon’s order to consolidate two prior lawsuits—Kendall Carnahan’s case, focused on PNUT token buyers, and Diego Aguilar’s broader case—into a single case, Aguilar v. Baton Corporation Ltd., dba Pump.Fun.
The amended complaint expands the allegations, naming Solana Labs, Solana Foundation, Jito Labs, Jito Foundation, and executives like Jito CEO Lucas Bruder and Solana Labs CEO Anatoly Yakovenko as defendants alongside Pump Fun’s operators, Alon Cohen, Dylan Kerler, and Noah Tweedale.
The complaint accuses Pump Fun of operating a “pump and dump” scheme, selling unregistered securities, and facilitating illicit activities like terrorist financing and drug trafficking due to a lack of compliance measures. It further alleges that Solana and Jito were “architects, beneficiaries, and coconspirators” in a $1.5 billion fraud, knowingly providing infrastructure to enable Pump Fun’s “illegal gambling and money transmission” enterprise. Specific claims include Solana’s role in offering no investor protections and Jito’s provision of MEV tooling to scale the operation.
The suit also references the Lazarus Group’s use of Pump Fun to launch the “QinShihuang” memecoin, allegedly to launder funds from a $1.5 billion Bybit hack. The amended complaint introduces Racketeer Influenced and Corrupt Organizations Act (RICO) claims, accusing the defendants of wire fraud and operating an unlicensed money-transmitting business. Burwick Law and co-counsel Wolf Popper represent over 500 investors, including lead plaintiff Michael Okafor, who lost nearly $250,000 on Pump Fun tokens.
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The case seeks rescission of token purchases, monetary damages, and litigation costs. Judge McMahon set a deadline of September 5, 2025, for Pump Fun’s legal team, Brown Rudnick, to respond, with further responses due within a month. The allegations that Pump Fun operated as an unregistered securities platform and facilitated illicit activities like money laundering could intensify regulatory oversight of DeFi and memecoin ecosystems.
If the court finds merit in the claims, it may set a precedent for classifying certain tokens as securities, requiring platforms like Pump Fun to comply with SEC registration and KYC/AML regulations. This could force similar platforms to overhaul their operations or face legal consequences. Naming Solana Labs and Jito Labs as “coconspirators” for providing infrastructure (blockchain and MEV tooling) is a novel legal strategy.
A ruling against them could establish liability for layer-1 blockchains and related tech providers, holding them accountable for how their technology is used. This might discourage blockchain developers from supporting high-risk applications or push them to implement stricter governance mechanisms. The use of RICO claims, typically reserved for organized crime, is a bold move. If successful, it could open the door for similar lawsuits against other crypto platforms, alleging racketeering for coordinated fraud or lack of compliance.
The lawsuit, representing over 500 investors, highlights growing investor frustration with losses in volatile memecoin markets. A favorable ruling could embolden more class action lawsuits, forcing platforms to prioritize investor protections, such as transparency in token issuance or safeguards against pump-and-dump schemes. It may also lead to clearer legal definitions of investor rights in crypto markets.
Solana, a major blockchain, faces reputational and financial risks due to its alleged role in enabling Pump Fun’s operations. A negative outcome could reduce trust in Solana’s ecosystem, affecting its token price, developer activity, and partnerships. It may also prompt Solana to adopt stricter protocols for projects built on its chain.
The case targets the memecoin creation model popularized by Pump Fun, which allows rapid token deployment. A ruling against Pump Fun could stifle innovation in this space, as developers and platforms may fear litigation for enabling speculative or fraudulent tokens, even if unintentionally.
Allegations of terrorist financing and money laundering tied to the Lazarus Group’s activities could amplify calls for global crypto regulation. This may lead to stricter international compliance requirements, impacting how crypto platforms operate across jurisdictions and potentially reducing the appeal of permissionless systems.
Naming individual executives like Anatoly Yakovenko and Lucas Bruder could set a precedent for personal liability in crypto lawsuits. This might deter talent from entering or staying in the industry, particularly for projects perceived as high-risk. The case’s outcome, expected to unfold after Pump Fun’s response by September 5, 2025, could reshape the legal landscape for DeFi, memecoins, and blockchain infrastructure.