Pump.fun Lawsuit Reveals Founder Admits Most Users Suffer Losses

According to a ChainCatcher report, law firm Burwick Law has filed an amended lawsuit on behalf of retail investors against Pump.fun, Solana Labs, and relevant executives. Previously, a judge allowed the plaintiffs to submit a second amended complaint, adding 5,000 private messages as new evidence, accusing them of orchestrating a "pump and dump" scheme. The lawsuit revealed that Pump.fun co-founder Alon Cohen admitted in private messages that most platform users had incurred losses, stating, "We made it easy for ordinary people to trade small tokens with market caps under $50,000, but this also exposed everyone to very low odds of success, like gambling." The lawsuit also claims that some crypto influencers were paid to promote memecoins without disclosing their financial interests and were given advance knowledge of purchase targets. However, the article noted that much of the evidence in the lawsuit is based on hearsay and lacks direct proof that Pump.fun executives personally profited, and it expressed reservations about the allegations of a "criminal organization."