Pump.fun Court Ban? SDNY Clas Action Lawsuit Update

Market Snapshot: SOL Price and Pump.fun Activity

CoinGecko data showed Solana’s SOL at about $124.55, up about 2.4% over 24 hours, with roughly $6.8 billion in 24-hour trading volume. DefiLlama data showed Pump.fun generated about $630,000 in fees over the past day and about $4.6 million over seven days, while Solana’s network fees were about $492,000 over 24 hours.

What the SDNY Pump.fun Lawsuit Says

The SDNY docket shows the case was filed on Jan. 30, 2025, naming Baton Corporation Ltd. d/b/a Pump.Fun and individual defendants including Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale.

In a June 18 order, Judge Colleen McMahon summarized the overlapping suits as alleging “the sale of unregistered securities in the form of cryptocurrency meme tokens,” and questioned why two similar cases had been filed two weeks apart, according to the docket.

Pump.fun is a Solana-based launchpad where users can create and trade new tokens with a few clicks. In practice, it functions as a high-velocity issuance and trading funnel for microcap tokens, with fees paid in the process.

The docket shows the court consolidated the Aguilar case with the related Carnahan case under the Aguilar case number on June 25, 2025. Plaintiffs then filed an amended complaint on July 22 that expanded the defendant list to include Solana Labs, the Solana Foundation, and Jito entities, among others, according to the docket entry.

Crypto platforms under U.S. legal pressure have often tightened access controls and compliance systems even before final rulings, as seen in earlier SDNY enforcement actions such as the U.S. Department of Justice’s BitMEX case.

Why People Are Talking About a Pump.fun Ban

The lawsuit is not framed as a simple damages dispute. Wolf Popper LLP said in a July 30 case update that plaintiffs are seeking remedies that include class certification, rescission of Pump.fun token transactions, the appointment of a federal equity receiver, and permanent injunctions tied to licensing and compliance controls.

An injunction is a court order that tells a party to stop doing specific conduct. That is different from a criminal ban or a regulator ordering an app store delisting, and it typically follows a separate fight over legal standards and facts. The docket does not show a court order that shuts down Pump.fun, and the court’s Dec. 9 entry is listed as an order on several motions without details in the docket text.

What a Shutdown Risk Would Mean for Solana

Pump.fun has become one of the clearest on-chain revenue engines tied to Solana’s retail meme-coin cycle, and fee data highlights the scale of that activity. A court-ordered halt, or a forced shift to strict U.S. geofencing, would remove a large source of token issuance and trading flow that drives blockspace demand, validator revenue, and the broader Solana attention loop.

That link between meme-coin issuance and fee generation means this dispute is not only procedural. If the case ends in constraints that materially reduce Pump.fun’s throughput, it could cut one of the clearer demand channels behind Solana’s recent on-chain activity.

That risk sits alongside a separate Solana narrative that has leaned into payments and stablecoin settlement, including Visa’s recent U.S. USDC settlement rollout on Solana, which we covered in Visa Just Enabled USDC Settlement on Solana in the U.S.. A hit to Pump.fun would target the high-churn retail side of Solana usage, not the payments thesis, so market reactions can still spill into SOL because the chain’s economic activity is not monolithic.

What to Watch Next

Key details are still not disclosed in the docket text for the most recent omnibus order entry, and it is not immediately clear which parts of the dismissal motions or amendment requests were granted. Watch for the next operative complaint, any renewed motion schedule, and any motion explicitly seeking preliminary injunctive relief.

For traders and builders, the practical signal is whether the litigation pushes major operational changes such as stricter access controls, new compliance claims, or partner risk management across the Solana ecosystem defendants named in the pleadings. For now, the public record supports an active lawsuit and requested injunctions, not a confirmed court ban on Pump.fun.