Investor Diego Aguilar has filed a class-action lawsuit against Baton Corporation, the operator of Solana-based meme coin launchpad Pump.fun.

The complaint also names company founders Alon Cohen, Dylan Kerler, and Noah Tweedale as defendants.

Key Allegations

Aguilar accuses Pump.fun of selling unregistered securities in the form of meme tokens. The lawsuit also claims the project facilitated Ponzi and Pump & Dump schemes, targeting inexperienced retail investors.

According to the lawsuit, Aguilar lost money on at least three tokens—FRED, FWOG, and GRIFFAIN—which were allegedly marketed as having “exponential” return potential.

Pump.fun allegedly targeted younger users through aggressive social media campaigns on TikTok and other platforms, pushing FOMO-driven narratives and promoting “1000x profit” promises.

The lawsuit further argues that Pump.fun intentionally ignored KYC/AML regulations, allowing fraudulent schemes to thrive on the platform.

Legal Action Against Pump.fun

The lawsuit is being led by New York-based law firm Burwick Law, which has previously announced plans for collective legal action against Pump.fun on behalf of investors who suffered “significant financial losses”.

Pump.fun’s Explosive Growth and Controversies

Despite the legal troubles, Pump.fun recently celebrated its first anniversary on January 19. Since its launch, the platform has generated a staggering $431 million in fees.

Conclusion

With regulators and legal firms cracking down on meme coin platforms, Pump.fun could face increased scrutiny. The lawsuit raises questions about the broader risks in the meme coin space, especially as Solana-based tokens continue to dominate retail speculation.

Related News

Pump.fun’s record $15.5 million daily revenue and the growing meme coin frenzy have drawn attention from both regulators and competitors like Moonshot.