Pump.fun, a Solana-based token launch platform, is facing a federal class action lawsuit alleging that it promoted and sold unregistered securities in violation of US securities laws. The lawsuit was filed by a Pump.fun user who claims that the platform operated a pump-and-dump scheme, generating nearly $500 million in fees. The lawsuit also alleges that Pump.fun partnered with influencers to drive interest in its tokens and omitted basic investor protections. Furthermore, the platform is accused of promoting tokens tied to antisemitism, racism, and explicit content. This is the third legal action against Pump.fun in recent months. The lawsuit raises questions about the legality of token launchpads and seeks damages and increased regulatory scrutiny of Pump.fun's business practices.



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