Pump.fun, a SOLANA -based token launch platform, claims that it has violated the US Securities Law, according to the application of the court on January 30, an application from the court to issue and promote unregistered securities. We are facing the Federal Collective Litigation.
Diego Aguilar, a Pump.fun user, filed a lawsuit in the US District Court for Baton Corporation Limited for the southern New York area -his founder, Alon Cohen, Dylan Kerler, Dylan Kerler And noah Bernhard hugo tweedale.
Aguilar, represented by Burwick Law, claims that platforms promote systematic pump and damp spins, promoting and selling unregistered securities, which will cost nearly $ 500 million.
Pump.fun has not yet issued a public response to the lawsuit.
Failure of fraud
The lawsuit claims that PUMP.fun has functioned as an unregistered securities sales hub and has partnered with influencers to promote treasure tokens.
Aguilal, who has lost by investing in Fred, FWOG, and Griffin, uses an aggressive marketing tactic by the platform, and operates a litigation as “the evolution of plans for ponz, pump, and dump”. He claims that he has created a legitimate illusion.
According to court documents, Pump.fun used a token infrastructure standardized in all memories launched on the platform, including its own binding curve mechanism that determines token prices based on demand.
The filing claims that this structure guarantees that all tokens have the same speculative characteristics and ensure unregistered securities under federal law.
In the lawsuit, PUMP.FUN omitted basic investor protection, such as customer verification and knowing the money Antiraux ring protocol, so that minors could invest in speculative assets without monitoring. In addition, the platform claims that it was used to launch anti -Semitism, racism, and tokens that promote explicit content.
I am looking for a JU trial
The lawsuit states that PUMP.FUN has promoted FRED, FWOG, and Griffain as an investment opportunity through the adjusted influencer campaign and exchange list.
The platform sells freds with high -quality artwork and aggressive promotions, ensuring multiple replacement lists and important social media.
FWOG, on the other hand, was presented as a competition for other successful memorials that use social media hype to drive the transaction volume, but Graphain was positioned as part of the AI ​​-driven transaction system.
The value of each token was greatly dependent on Pump.fun’s marketing, replacement list, and community involvement. The factor claims that the lawsuit will be established as a securities under the Howey test.
This lawsuit has been a third legal measure against pump.fun in recent months. The company had previously been sued for the role of PNUT and Hawk tokens.
This lawsuit raises a wider range of questions on the legality of the token launch pad and the responsibility to promote speculative investment. AGUILAR and his lawyer are seeking a JU trial to pursue the damage of Pump.fun’s business model and further scrutiny of further regulations.
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