$5.5B Meme Coin Lawsuit Hits Pump.fun & Solana Affiliates

$5.5 Billion Meme Coin Gambling Lawsuit Hits Pump.fun and Solana Affiliates

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 24, 2025

Key Takeaways

Pump.fun and Solana-linked groups are accused of running a $5.5 billion unlicensed meme coin casino;
The lawsuit claims the system favored bots and insiders, which leaves regular users at a disadvantage;
Plaintiffs filed under the RICO Act and added charges, including fraud, false ads, and securities violations.

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Pump.fun and several groups tied to the Solana SOL $204.96 blockchain have been running an illegal gambling system using meme coins, according to a class action lawsuit filed in the Southern District of New York.

The case, filed by Burwick Law on July 23, targets Pump.fun and its partners, Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation.

According to the lawsuit, Pump.fun operated like a slot machine, which allowed people to create and trade tokens with no verification of their identity or the origin of the funds.

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The plaintiffs claimed that this system was built to favor bots and insiders, who had faster access to trades and a better chance of making a profit.

The complaint also points to features like bonding-curve pricing and wallet anonymity as tools that made the system feel like gambling.

The lawsuit estimates total losses between $4 billion and $5.5 billion. These figures are based on blockchain transaction records and the outcomes of trades made on Pump.fun and similar platforms.

More than a dozen individuals are named in the case, including leadership from all four organizations. The plaintiffs are bringing charges under the Racketeer Influenced and Corrupt Organizations (RICO) Act, which is often used in cases involving organized crime.

They are also accusing the defendants of wire fraud, false advertising, selling unregistered securities, and breaking New York consumer protection laws.

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