Solana News Today: Pump.fun and Solana Jito Named in Amended RICO Suit Alleging 5.5B Meme Coin Gambling Scheme

A revised class action lawsuit filed in the Southern District of New York accuses Pump.fun and its infrastructure partners—including Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation—of orchestrating a $5.5 billion meme coin gambling scheme modeled after unlicensed digital casinos. The suit, led by Burwick Law, alleges the platform operates as a “slot machine” that mass-produces tokens with no transparency or investor safeguards, enabling speculative trading in a structurally rigged environment. Plaintiffs claim the ecosystem exploits anonymous wallet access, bonding-curve pricing, and insider trading to extract billions from retail users, with estimated losses ranging between $4 billion and $5.5 billion based on on-chain transaction data and trade outcomes [1]. The complaint describes Pump.fun as a “front-facing slot machine cabinet” designed to incentivize high-risk token creation and trading without identity checks or disclosure requirements.

The lawsuit invokes the Racketeer Influenced and Corrupt Organizations (RICO) Act, accusing the defendants of running an illegal gambling enterprise and unlicensed money transmission scheme. Additional claims include wire fraud, false advertising, offering unregistered securities, and deceptive practices under New York consumer law. The complaint further alleges that Solana and Jito were not passive infrastructure providers but active participants profiting from the ecosystem. Solana Labs and the Solana Foundation are said to have monetized user activity through blockspace fees and the appreciation of SOL, while Jito is accused of enabling front-running via maximal extractable value (MEV) tools and validator control. The case names over a dozen defendants, including executives from the involved entities, and highlights Pump.fun’s rapid growth—reaching a $2 billion market cap in recent months after a $600 million token launch [1].

Legal experts note that while the allegations are serious, the case remains untested in court. The U.S. legal system allows broad claims in litigation, many of which may not withstand early motions to dismiss. Burwick Law, known for targeting crypto platforms, has previously sued Pump.fun over the collapse of the PNUT meme coin and the $LIBRA token promoted by Argentina’s President Javier Milei, which led to a $58 million USDC freeze by a U.S. court. The firm’s history of litigation underscores a broader trend of legal scrutiny against crypto projects, particularly those facilitating speculative or unregulated trading.

Andrew Rossow, a public affairs attorney and CEO of AR Media Consulting, emphasized that infrastructure providers claiming neutrality may still face legal exposure if their systems enable illicit activities. “Permissionless doesn’t mean beyond reproach,” he noted, stressing that platforms like Solana and Jito could be held liable even if they position themselves as neutral facilitators. The lawsuit reflects growing concerns about the role of blockchain networks in speculative trading ecosystems, where low barriers to entry and anonymity create fertile ground for exploitation. Pump.fun’s simple interface has made it a central hub for Solana’s on-chain activity, further amplifying the legal and reputational risks for its infrastructure partners [1].

The case carries significant implications for the crypto industry. If successful, it could set a precedent for holding infrastructure providers accountable for activities on their networks, challenging the notion of blockchain as a fully decentralized and unregulated space. While the defendants—including Pump.fun, Solana, and Jito—have not yet responded to the allegations, the lawsuit highlights the intersection of blockchain technology, consumer protection, and financial regulation. As the industry grapples with balancing innovation and accountability, legal challenges like this may shape the future of decentralized finance and meme coin trading.

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[1] [Decrypt: Solana, Pump.fun Named in Amended RICO Suit Alleging $5.5B Meme Coin Gambling Scheme](https://decrypt.co/331528/solana-pump-fun-amended-rico-suit-alleging-meme-coin-gambling)