Pump.fun Faces Second Class-Action Lawsuit as Fraud Allegations Mount

With two lawsuits in motion and fraud allegations flying, is this meme coin casino finally running out of luck?

Pump.fun, a platform known for launching meme coins on the Solana (SOL) blockchain, is facing a second class-action lawsuit just days after the first.

The latest lawsuit, filed on Jan. 30 in the Southern District of New York, was led by Burwick Law and Wolf Popper LLP. It alleges that the platform is violating U.S. securities laws by selling unregistered securities disguised as meme tokens.

Multiple defendants are named in the lawsuit, including Baton Corporation Ltd (operating as Pump.fun) and key figures Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale.

The plaintiff, Diego Aguilar, claims he suffered financial losses after purchasing several tokens on the platform, including the Fwog (FWOG) token and the Griffain (GRIFFAIN) token.

These tokens, aggressively marketed with meme culture and promises of exponential returns, allegedly led to significant losses despite reaching high valuations—such as the FWOG Token, which Pump.fun promoted as having hit a $500 million market cap.

The lawsuit follows an earlier case filed on Jan. 16 by Burwick Law on behalf of Kendall Carnahan, targeting the sale of the Peanut the Squirrel (PNUT) Token.

The complaint alleges that Pump.fun operates by collaborating with influencers to co-issue and market unregistered securities.

It also claims that the platform’s business model represents an evolved form of Ponzi and pump-and-dump schemes, extracting nearly half a billion dollars in fees from investors.

Burwick Law's legal campaign against Pump.fun comes as no surprise. On Jan. 15, Max Burwick, the firm's founder and partner, openly criticized platforms like Pump.fun, calling them “the ultimate evolution of multi-level marketing scams.”

That same day, his firm urged investors who lost money to memecoins through rug pulls and misleading promises to come forward, later launching a dedicated website to assist affected clients.