PumpFun Corp faces a class-action lawsuit for allegedly running a pump-and-dump scheme. They have basically been accused of misleading investors, and targeting minors.
PumpFun Corp is in serious legal hot water after being hit with a class-action lawsuit. The company is accused of running a pretty common pump-and-dump scheme with its cryptocurrency, Fun Token, leaving investors with massive losses. The lawsuit, filed in New York by the law firm Silver Miller, claims that PumpFun Corp inflated Fun Token’s price, only to crash it shortly after, causing huge financial damage to investors.
The case points fingers at the company’s trading platform, Pump.Fun, which allegedly fostered risky, speculative trading by using gamified designs and overselling the profit potential of crypto. The lawsuit also highlights major flaws in investor protections, like missing KYC (Know Your Customer) checks, no age verification, and lack of clear risk disclosures—plus some shady marketing practices that made everything seem way safer than it really was.
Silver Miller is urging anyone who feels they’ve been scammed by the platform to join the lawsuit. If anything this case really serves as a big warning to crypto traders to do their homework and avoid falling for flashy promises of quick gains. PumpFun is being pushed to answer for its actions, and more updates will follow as the case progresses.
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