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The lawsuit alleges that Pumpfun executives privately admitted that "most users are losing money" and accuses the platform of being a "manipulated casino."
Svmuu News: U.S. law firm Burwick Law recently refiled a lawsuit against Pumpfun, Solana Labs, and related executives, accusing them of building a “manipulated, unlicensed gambling platform” and alleging they organized large-scale pump-and-dump schemes. The lawsuit cites portions of private chat logs in which Pumpfun co-founder Alon Cohen reportedly stated in internal communications that “most” investors trading meme coins on the platform would lose money, likening such low-market-cap token trading to high-risk gambling. The plaintiffs also cited statements from anonymous influencers, alleging that certain promotional activities involved advance knowledge of token information and coordinated timing for selling off holdings. However, reports note that the complaint lacks direct evidence proving that Pumpfun executives personally profited from such activities, and some allegations rely on hearsay, limiting the strength of the evidence. Whether this constitutes “market manipulation” remains to be determined by the court’s subsequent proceedings and the results of its evidence gathering. (DL News)
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