Pump.fun Under Fire: Token Dump Allegations Spark Lawsuit

Pump.fun, the cryptocurrency project known for its high-risk platform Pump token, is facing intense scrutiny after accusations of token dumping and a major class action lawsuit. The controversy stems from significant USDC transfers to Kraken exchange, highlighted by blockchain analytics firm Lookonchain, suggesting potential sell-offs that have driven down the PUMP token price by over 40%. A $5.5 billion class action lawsuit further adds fuel to the fire, alleging Pump.fun operated as an illegal securities exchange and engaged in pump-and-dump schemes.