Solana, Jito Executives Named in Expanded $722M Pump.fun Lawsuit
The lawsuit against meme coin platform Pump.fun escalated further into the law firms Burwick Law and Wolf Popper now naming senior leaders from Solana Labs and Jito Labs as defendants.
The lawsuit claims these top executives participated in large-scale illegal gambling and laundering schemes disguised as a memecoin platform.
In an amended complaint yesterday, July 23, the legal teams named Solana co-founders Anatoly Yakovenko and Raj Gokal as co-conspirators, alongside Solana Foundation executives Dan Albert, Lily Liu, and Austin Federa.
Also named were Jito Labs CEO Lucas Bruder and COO Brian Smith, in addition to Pump.fun founders Alon Cohen, Dylan Kerler, Noah Bernhard, and Hugo Tweedale.
The suit accuses these parties of operating a digital platform that simulates a gambling system, generating over $722 million in profits through a mechanism known as a bonding curve. This model allegedly exploits user behavior like slot machines, encouraging high-risk speculation.
The complaint includes multiple allegations under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a federal law targeting organized criminal activity. The plaintiffs also cite wire fraud, intellectual property theft, and unlicensed money transmission.
Additional violations include the Bank Secrecy Act, Section 311 of the USA PATRIOT Act, FinCEN compliance rules, OFAC sanctions regulations, and state-level licensing laws for money transmitters.
According to the filing, Pump.fun failed to implement required anti-money laundering (AML) procedures, neglected to monitor suspicious transactions, and did not verify user identities. The plaintiffs claim this lack of oversight allowed the North Korean cybercrime group Lazarus to launder stolen funds through the platform.
The lawsuit specifically accuses Pump.fun of facilitating the laundering of funds stolen in the $1.5 billion Bybit hack. The Lazarus Group allegedly used the platform to launch a meme coin called “QinShihuang,” which served as a vehicle for moving illicit funds.
The plaintiffs further allege that Pump.fun knowingly promoted and profited from tokens that relied on hate speech, violent content, and exploitation to attract attention and trading volume. They also claim trademark violations related to several meme tokens launched through the platform.
Notably, Jito Labs is accused of manipulating transaction flow on the blockchain. The complaint states that Jito intercepted “winning spins” and redirected them to users who paid the highest bribes, undermining the fairness of the system.
In response, Pump.fun has assembled a legal team from the international law firm Brown Rudnick, including Stephen D. Palley, a seasoned crypto attorney, and Daniel L. Sachs, a former SEC investigator.
The legal battle comes as Pump.fun expands its presence in the crypto space, having recently launched its own PUMP token and completed its first corporate acquisition.