pump. funone of the most successful cryptocurrency projects of the past year, is facing a class-action lawsuit over alleged violations of securities law.

The lawsuit specifically outlines the sale of the popular meme coin Peanut squirrel (Girls) as illegal. While the single plaintiff claims to have lost only $231, he is filing the claim on behalf of a much larger group.

foot On Thursday in the Southern District of New York, the lawsuit alleges that Pump.fun was offering and selling unregistered securities as a result of negligence or strict liability. It does not claim that the project founders committed fraud or intentional or reckless behavior, but it still seeks to hold them accountable.

Filing requires a jury trial in New York.

“Our complaint alleges that Pump.fun markets itself as promoting financial freedom and resistance to censorship,” Burwick Law, which filed the lawsuit, said. Published on X. “While in practice, it displayed racist, anti-Semitic, torturous and sexist content on its homepage and exploited the hopes of ordinary people – including minors – to collect hundreds of millions of dollars in fees.”

The defendants include Baton Corporation Ltd. of the United Kingdom, which the lawsuit claims does business under that name pump. funin addition to its founders: Alon Cohen, Dylan Kerler, and Noah Bernhard Hugh Twidial (known as Sabigigo).

Only one plaintiff, Kendall Carnahan, is named in the lawsuit. They are represented by attorneys from Wolf Popper LLP and Burwick Law, which is also the firm I recently filed a claim Against creators Hook Toah symbol. However, the plaintiff claims that there may be “hundreds or thousands” of victims harmed by PNUT and the lawsuit has been brought on behalf of all similarly affected Pump.fun users.

“This is typical of securities class actions, where a representative plaintiff brings claims on behalf of a larger group affected by the same alleged illegal practices.” Carlo D'AngeloA Crypto criminal defense attorneyHe said Decryption. If successful, the lawsuit will seek far more than Carnahan's individual losses.

Carnahan claims he purchased PNUT across three transactions on November 4. A day later, they sold everything at a loss of only $231. Then PNUT skyrocketed More than 4,134% over the next nine days, bringing the market value to $2.4 billion.

Neither Cohen nor Tweedale responded immediately DecryptionRequest for comment.

Developers or founders?

To launch a token on the launchpad, users simply have to fill out a set of boxes before optionally purchasing some tokens. This then creates a token using Pump.fun's standardized contracts. This means the platform and its founders, not token publishers or developers, are to blame, the lawsuit says.

“Token developers on Pump.Fun act only as participants within the strict Pump.Fun framework rather than as independent issuers,” the lawsuit states. He said. “Pump.Fun maintained centralized control over token marketing, exchange listings, and marketplace activities,” the filing later said.

With this streamlined token creation process, more than 6 million symbols Created using the platform during its lifetime — which is Up to 71% of new codes It is released on Solana every month. As a result, I made Pump.fun More than $420 million In revenue - collected through fees charged for each transaction.

The lawsuit claims that once a token achieves “a certain level of success,” the platform begins marketing specific tokens and that PNUT was a prime example. He said that, Decryption Just found Two tweets With the words "Peanut" or "PNUT" - one of which was congratulating her on her hit $1 billion market capitalization.

Furthermore, the lawsuit claims that Pump.fun's design encourages "child abuse, possibly underage pornography, anti-Semitism," and more as people look to increase the value of their token through controversial stunts. This is best illustrated by: Pump.fun dev who set himself on fire for his TruthOrDare (DARE) token in an attempt to pump his token. Micolthe developer, was immediately transferred to hospital with Third degree burns across his body.

Exhibit (b) of the case Details 12 Pump.fun codes that are either racist, offensive, or inherently dangerous. It claims that Pump.fun knowingly facilitates and promotes tokens that exploit hate speech, violence, and exploitation to generate trading volume.

What did Crypto Diggins do in response? Invest in these currencies, of course, with one trader claiming it Up to $8,000 In just two hours.

One token shows a woman in her underwear tied to a chair, with the token creator claiming that they will perform sexual acts once the token reaches a market cap of $100,000. This came amid concern Direction of live broadcast Who saw Multiple controversial trends spread quicklyclimax with someone Faking their suicide Before the feature is withdrawn from the site.

Although this is shocking, the lawsuit also claims that the site failed to implement basic investor protections that apply in this case. Specifically, there is no age verification on the site with many of the tokens on the site not suitable for underage audiences - despite the unsafe for work sign. There is also no KYC, AML or risk disclosure on the site.

This isn't the first time Pump.fun has found itself in the middle of controversy.

In May, it was dried for a period Estimated at $2 million Solana was valued by a disgruntled employee he had Premonitions With how to manage the company. Garrett Dunn, former employee, now Facing charges Abuse of office and criminal conveyance at Wood Green Crown Court, which is what he is seeking He withdrew his guilty plea.

Then, after controversies over live streaming, the UK regulator, the Financial Conduct Authority Issue a warning Against the platform. This led to Pump.fun restricts users from the United Kingdom From entering the site.

Modified by Stacey Elliott.