Solana-based meme coin launchpad Pump.fun is facing legal fire after a new lawsuit accused it of operating an unregistered gambling platform and violating RICO statutes, a law typically used to target organized crime. Filed in a US federal court, the case paints Pump.fun’s algorithmic token-launch system as a “slot machine for crypto,” designed to exploit retail users through gamified speculation.
According to the lawsuit, Pump.fun’s platform facilitates the production and quick trading of meme coins in a manner akin to high-frequency gambling, which promotes compulsive behavior and deceives investors about possible profits. The platform’s distinctive bonding curve mechanism, which enables tokens to pump rapidly in early trading phases—before many crash to near-zero, is at the heart of the controversy.
Regulatory Heat and RICO Charges
The addition of Racketeer Influenced and Corrupt Organizations (RICO) charges is what elevates the case to a very serious level. This suggests that the plaintiffs think Pump.fun committed coordinated fraud, which could lead to a criminal investigation in addition to civil penalties.
Although Pump.fun has not yet responded publicly, the case has raised concerns among the Solana and larger meme coin communities. According to legal experts, this might establish a standard for how courts and regulators categorize websites that gamify financial speculation, regardless of whether those websites employ algorithmic or decentralized systems.
The lawsuit also comes as US lawmakers and regulators are putting more and more pressure on the industry to clarify cryptocurrency token launches, particularly those that involve retail participation and hype cycles based on memes.
The legal outcome may change the way crypto launchpads are created, promoted, and regulated in the future, particularly those that combine financial trading with gamified user experiences, regardless of whether Pump.fun wins the case in the end.
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