Pump.fun, which also lost money to the founders of Silk Road, faces a class-action lawsuit for 'violating US securities laws'.

According to CoinDesk, the Solana-based token issuance platform Pump.fun is facing a class-action lawsuit related to violations of securities laws. The company and its executives are accused of violating U.S. securities laws and pocketing about $500 million in fees. The plaintiffs in the lawsuit particularly emphasized that they lost money due to trading memecoins such as FWOG, FRED, and GRIFFAIN. In early January, the company was also sued in a class action lawsuit, with allegations that it had collected hundreds of millions of dollars in fees for posting anti-social content, including racist, illegal drug use, and violence, over the past several months.

Meanwhile, citing Akamai data, The Block reported that a cryptocurrency wallet related to Silk Road founder Ross Ulbricht lost about $12 million on Pump and Dump. It is said that someone with access to the wallet made a mistake during the process of providing liquidity to Radium. It is reported that the pumpdotfun coins transferred to him were initialized as a liquidity pool at the wrong price, and the corresponding amount was immediately sold to the existing pool by the MEV Bot. This has reduced Ross Ulbricht's ROSS holdings of Ross Solana-based memecoins from 40% to 10% of the total supply.