Pump.fun’s $4B Token Launch Hits Another Snag—Legal Drama Throws Wrench in Plans

Another delay for Pump.fun’s high-stakes token launch—this time, legal headaches are to blame. The $4 billion project, already buzzed about in DeFi circles, can’t seem to catch a break.

What’s the holdup? Regulatory scrutiny’s tightening its grip, and the team’s playing defense. No surprise—crypto’s wild west days are fading fast.

Timing couldn’t be worse. The market’s hungry for the next big thing, but lawyers are calling the shots now. Guess even degens have to follow rules sometimes.

One thing’s certain: when (or if) this token finally drops, the fireworks will be epic—on-chain or in court.

Pump.fun’s legal troubles

Pump.fun is facing legal issues in multiple jurisdictions, including a notable class action lawsuit. On Jan. 15, Burwick Law served the platform with a class action suit, accusing it of violating securities laws and engaging in market manipulation.

The lawsuit claims Pump.fun artificially inflated token prices for its own benefit, with the alleged manipulation resulting in significant investor losses. Max Burwick, founder of the law firm, described the project as “the ultimate evolution of multi-level marketing scams,” preying on desperate individuals.

In February, Burwick Law and Wolf Popper LLP also issued a cease and desist letter over alleged IP violations. Specifically, user-generated memecoins on Pump.fun frequently use logos and names that may infringe on the intellectual property of private individuals or corporations.

The legal situation has put the community on high alert. On June 16, X suspended the accounts of both Pump.fun and its founder, before reinstating them a few days later. While neither X nor Pump.fun provided an explanation, the incident was not isolated, several other crypto platforms also had their accounts temporarily suspended. Still, it remains unclear whether the Pump.fun ban was directly related to its ongoing legal troubles.