Pump.fun Postpones Token Auction Again amid Legal Troubles
Solana-based memecoin launchpad Pump.fun has once again delayed its token auction. The latest postponement comes amid escalating legal issues and a social media setback.
Initially planned for June 25, the auction was expected to raise $1 billion at a $4 billion valuation.However, crypto reporter Colin Wu now reports that the sale will likely take place in mid-July. the launchpad team explained that the planning started in 2024 but noted this is the latest in a series of delays.
Pump.fun faces multiple legal challenges. A class-action lawsuit from Burwick Law, filed on January 15, accuses the platform of breaking securities laws and manipulating the market. The suit alleges these actions inflated token prices, causing investor losses. Max Burwick, the law firm’s founder, called Pump.fun a “multi-level marketing scam.”
Additionally, Pump.fun faced a cease-and-desist letter over intellectual property violations. User-generated memecoins on the platform often use logos and names that could infringe on private rights.
The legal troubles aren’t the onyl setbacks. In June, X temporarily suspended Pump.fun and its founder’s accounts, though they were later reinstated. The reason for the suspension remains unclear but adds to the community’s concerns about Pump.fun’s future.
