PumpFun logo in front view. Source: cryptoFX - stock.adobe.com

Key Takeaways:

Amended lawsuit accuses Pump.fun and Solana-linked entities of running an unlicensed digital casino, extracting $5.5B via deceptive schemes.
Plaintiffs allege violations including RICO, fraud, and unjust enrichment, claiming the platform mimicked a rigged slot machine.
Major investors recently dumped over $160M in PUMP tokens, intensifying market concerns amid the legal turmoil.

An amended class-action lawsuit filed in the Southern District of New York accuses memecoin platform Pump.fun and several Solana-linked entities of operating an unlicensed digital casino, allegedly extracting over $5.5 billion from users through deceptive schemes.

The complaint likens Pump.fun to a “slot machine cabinet”, where early adopters profit by dumping tokens on later participants.

This evening, we filed an amended complaint on behalf of plaintiffs alleging RICO claims against Pumpdotfun, Solana, Jito, and their respective officers in Aguilar v. Baton Corp. pic.twitter.com/QcJWpQtBwY
— Burwick Law (@BurwickLaw) July 23, 2025

Defendants include the pseudonymous developer “Bernie”, parent company Baton Corp., Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation.

The suit alleges violations under the Racketeer Influenced and Corrupt Organizations Act (RICO), fraud, civil conspiracy, and unjust enrichment, claiming the platform had no real project, product, or revenue, relying purely on hype and token volatility.

Plaintiffs seek to rescind all transactions and recover compensatory damages.

The Solana-linked groups are accused of enabling the scheme by selling block space, earning validator fees, and benefiting from SOL token appreciation.

Jito Labs allegedly profited from strategies extracting value from memecoin trades.

The original suit claims Pump.fun generated nearly $500 million in platform fees using guerrilla marketing.

Recently, two early investors sold over $160 million worth of PUMP tokens, raising concerns as nearly 60% of presale participants have exited their positions.