An expanded lawsuit accuses memecoin platform Pump.fun and multiple Solana ecosystem partners of running an unlicensed casino operation.
The amended filing adds racketeering (RICO), fraud, civil conspiracy, and unjust enrichment claims against the defendants for orchestrating allegedly unlawful gambling activities through blockchain technology.
Solana Labs and infrastructure provider Jito Foundation are named for purportedly enabling the scheme via block space sales and maximum extractable value (MEV) techniques on their network.
Investor concerns escalated as early backers transferred more than $160 million worth of PUMP tokens to exchanges, signaling potential sell-off pressures during legal turmoil.
The lawsuit spotlights Pump.fun’s controversial $500 million token sale that concluded in just 12 minutes, highlighting rampant market interest despite the platform’s questionable fundamentals.
Legal challenges facing memecoin projects with weak fundamentals threaten broader investor confidence amid rising regulatory scrutiny of cryptocurrency-based gambling simulations.