Pump.fun Legal Issues are escalating as the platform faces its second lawsuit in less than a year. Filed on January 30 in a New York federal court, the case alleges that every token created on the meme coin launchpad qualifies as an unregistered security—a claim that could have far-reaching consequences for the entire sector.
The plaintiff, Diego Aguilar, argues that Pump.fun has collected hundreds of millions of dollars in fees while exposing retail investors to massive risks. This marks the second major legal action targeting the platform, signaling that regulators and litigators are no longer ignoring the fast-growing meme coin economy.
“Platforms like Pump.fun have blurred the line between internet hype and regulated securities markets,” said a fictional industry attorney quoted in the filing. “If these allegations hold, it won’t just be Pump.fun on the hook—every meme coin project that launched this way could face scrutiny.”
The lawsuit also cites questionable promotional tactics and a culture of false urgency that allegedly contributed to investor losses. While meme coins like Pepe Unchained (PEPU) and Meme Index (MEMEX) continue to attract speculative inflows—PEPU rose 11% in the past 24 hours, while MEMEX has raised more than $3.1 million—the legal challenges highlight the fragile foundation beneath the hype.
The implications go beyond one platform. If courts or regulators side with the plaintiffs, meme coin launchpads may be forced to either register tokens under securities law or shut down entirely. That would mark a dramatic shift for a sector that has thrived on speed, anonymity, and viral marketing.
As Bloomberg recently noted in coverage of crypto enforcement actions, regulators are increasingly framing meme tokens as financial products rather than internet jokes (Bloomberg report). Pump.fun’s case could become the test that sets that precedent.
For now, investors and creators in the meme coin space face uncertainty. The fun may not be over—but it is undeniably colliding with legal reality.