Solana, Pump.fun Named in Amended RICO Suit Alleging $5.5B Meme Coin Gambling Scheme

A class action lawsuit filed in the Southern District of New York alleges that Pump.fun and its infrastructure partners—including Solana Labs, the Solana Foundation, Jito Labs, and Jito Foundation—are operating a coordinated racketeering enterprise that resembles an unlicensed digital casino, extracting billions from users through speculative meme coin trading.

Filed Wednesday by Burwick Law, the suit describes Pump.fun as a “front-facing slot machine cabinet” used to mass-produce and promote tokens with no disclosure or investor protections. 

It alleges the platform allowed users to launch and trade tokens anonymously, with no identity checks, in what plaintiffs call a structurally rigged environment.

The complaint alleges “platforms like Pump.fun automate this dynamic through bonding-curve pricing, anonymous wallet access, and priority trading for insiders and bots,” turning the process into “a form of unlicensed, zero-sum gambling where the odds are overwhelmingly against the average participant.”

A Pump.fun spokesperson did not immediately respond to a request for comment. Decrypt has also approached the Solana Foundation, Solana Labs, Jito Labs, and the Jito Foundation for comment.

While the complaint outlines serious allegations, it remains untested in court. Legal observers note that in the U.S., anyone can file a lawsuit and make sweeping claims, many of which may not survive early motions.

The lawsuit names more than a dozen defendants, including executives from all four entities. It estimates user losses from meme coin activity across Pump.fun and related venues at between $4 billion and $5.5 billion, citing on-chain transaction data and trade outcomes.

The plaintiffs bring claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act, alleging the defendants ran an illegal gambling enterprise and unlicensed money transmission scheme. 

Additional claims include wire fraud, false advertising, the offer of unregistered securities, and deceptive practices under New York consumer law.

Crypto in the crosshairs

Burwick Law has a history of filing multiple lawsuits targeting crypto platforms and token launches. 

In January, it filed a separate suit against Pump.fun over the collapse of the PNUT meme coin, alleging it was fraudulently promoted by influencers. 

The firm has also brought actions tied to the Hawk Tuah token, as well as $LIBRA—a token promoted by Argentina’s President Javier Milei that allegedly resulted in over $100 million in losses and a U.S. court-ordered freeze of $58 million in USDC.

The complaint further alleges that Solana and Jito were not neutral infrastructure providers but active participants in the enterprise. 

Jito is accused of enabling front-running through MEV tooling and validator control, while Solana Labs and the Solana Foundation allegedly monetized user activity through blockspace fees and SOL appreciation.

“Reputation is everything. Whether you’re a blockchain juggernaut or a startup running on caffeine and code, all it takes is one lawsuit to shift the public narrative,” said Andrew Rossow, public affairs and reputation management attorney and CEO of AR Media Consulting. “Public trust moves markets.”

Pump.fun has seen rapid growth in recent months, reaching a $2 billion market cap earlier this month following a $600 million token launch. Its simple interface and low barriers to entry have made it a central component of Solana’s on-chain activity.

Asked why the case may matter for infrastructure providers like Solana and Jito, Rossow said platforms often described as neutral may not be insulated from legal exposure.

“I hear it time and again: ‘We’re just the tech provider’ or ‘the engineer.’ But if your rails are facilitating activities in a legal gray zone, expect to be in the spotlight, sometimes unwillingly. Permissionless doesn’t mean beyond reproach,” he said.