An amended class-action complaint filed in the Southern District of New York alleges that the memecoin platform Pump.fun operated as a “front-facing slot machine cabinet,” extracting over $5.5 billion from users through deceptive digital asset schemes.
The lawsuit, filed on Wednesday, names the platform’s operators, including the pseudonymous developer Bernie, the parent company Baton Corp., and infrastructure partners such as Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation as defendants.
Lawsuit opened up against Pump fun, Solana, and Jito alleging Pump fun is an illegal gambling website with $3.18bln in revenue pic.twitter.com/103dgRcYc3
— Fungible 👑 (@fungibletokn) July 24, 2025
Solana Foundation and Jito Labs Also Included In The PUMP Crypto Lawsuit
The case accuses them of participating in a coordinated enterprise resembling an “unlicensed casino,” one that relies on volatility and hype rather than proper disclosures or investor protections.
The filing states, “The structure mimics a rigged slot machine where the first few players win by dumping their tokens on later ones. There is no underlying project, product, or revenue; only a fast-moving cycle of buying, dumping, and collapse.”
The amended complaint expands the scope of the alleged misconduct, incorporating claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), as well as allegations of fraud, aiding and abetting, civil conspiracy, and unjust enrichment.
Plaintiffs seek to rescind all transactions conducted on Pump.fun and demand compensatory damages for the harm they claim was caused by what they describe as a “rigged” system.
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The lawsuit also asserts that Solana-affiliated entities played a role in facilitating the scheme. According to the plaintiffs, “Solana Labs and the Solana Foundation provided the venue, the Solana blockchain itself, and monetized each wager through the sale of block space, validator fees, and the appreciation of SOL tokens.”
Additionally, the filing emphasizes the liquidity infrastructure supplied by Jito Labs and the Jito Foundation, which allegedly generated revenue through maximum extractable value strategies linked to memecoin trading on Pump.fun.
Originally filed in January of this year, the lawsuit claimed that Pump.fun used guerrilla marketing tactics to create artificial urgency around “highly volatile” tokens, from which it reportedly earned nearly $500 million in fees.
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PUMP Crypto Continues To Freefall Following Pump.fun Co-Creator’s Disastrous Podcast Interview
The PUMP crypto token has fallen to fresh lows following the Pump.fun co-founder’s appearance on the Thread Guy podcast. Thread Guy is a popular member of ‘crypto twitter’ and has a livestreamed podcast, which is where Alon, one of Pump.fun’s founders made an appearance on Wednesday (July 23).
It was a disastrous interview, with Alon seemingly unwilling to commit to hard dates for any plans that could turn the tide on the PUMP crypto bleed. Most notably, while confirming that a PUMP airdrop will be coming eventually, Alon refused to provide any specific dates and even stated that they will take their time to ensure it is carried out in the best way possible.
Angry investors and users of the Pump.fun platform saw this as yet another sign of the PUMP team not caring about its community and the millions of users that have all interacted with the launchpad over the past 18 months.
Following the interview, PUMP crypto fell from around $0.004 to $0.0023, representing a 62% decline from its all-time high launch day price of $0.0068. The recent slide below $0.003 has also taken the PUMP crypto market cap below $1 billion, following its sell-out $500 million presale raise.
Pump.fun may just be the most hated project in crypto history, with many traders calling for it to go to zero in the coming months. However, it should be noted that historically, projects with numerous detractors often end up sparking some of the largest hate rallies. And with the Pump.fun team having around $2 billion in liquid assets on hand to pump the PUMP token, the recovery could be biblical.
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BONUS: Snorter Bot (SNORT) Hits $2.4M In ICO Funding – $3M Next?
While PUMP crypto continues to be the disappointment of the year, Snorter Bot (SNORT) is quickly becoming one of the most sought-after tokens this Summer as it secures $2.4 million in presale funding, with daily six-figure inflows becoming a common occurrence.
Its growing popularity is due to the Telegram trading bot technology that the SNORT token is powering. With the altcoin market heating up, SNORT is emerging as a blue-chip gem.
This multi-chain-ready Telegram trading bot offers SNORT holders competitive trading fees of just 0.85%, making it more affordable than competitors such as Maestro, BONKBot, and Trojan from day one.
Snorter Bot enters a market where established competitors, such as BONKbot, Banana Gun, and Trojan, are generating annual fees between $40 million and $80 million, highlighting the potential for Snorter to become the trading bot with the lowest costs available.
With its industry-leading low fees from day one, Snorter Bot could potentially launch a revenue share program similar to Banana Gun, which would see holders of the SNORT token receive a % of the bot’s earnings, adding even more utility to the project.
Since its ICO went live, Snorter Bot has raised nearly $2.2 million in just over a month, reflecting strong investor interest in a project that combines the appeal of a meme coin with practical utility.
The bot comes equipped with built-in MEV protection, an innovative sniper tool, and a copy-trade function. This allows users to follow their favorite wallets and influencers while also enabling them to acquire low-cost tokens during exciting new launches.
Although SNORT will initially be available only on the Solana network, it has been designed with multi-chain capabilities in mind, with plans to support Base, Ethereum, and other prominent blockchains soon.
Investors looking for passive income from their SNORT presale holdings can stake their tokens for an impressive 174% APY. This provides an excellent opportunity for traders to earn passive income while awaiting the conclusion of the Snorter Bot ICO.
Currently, just under 48 hours are remaining until the SNORT presale moves to the next price stage. Once the timer hits zero, the current price of $0.0993 will no longer be available.
Visit SNORT HereEXPLORE: Best Meme Coin ICOs to Invest in 2026
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