pump.fun faces a class-action lawsuit for the unregistered marketing and issuance of meme coins

ChainCatcher news, according to Bloomberg Law, pump.fun is facing a class action lawsuit, with plaintiffs accusing pump.fun of violating U.S. securities laws by marketing and issuing unregistered and highly volatile meme coins, exposing investors to significant financial risks and collecting nearly $500 million in fees from it.

The lawsuit has been filed in the U.S. District Court for the Southern District of New York and is the first to bring charges against all meme coins on the pump.fun platform. The plaintiffs describe it as "a new evolution of a Ponzi scheme and pump and dump."