In the United States, the creators of Solana and Pump.fun are accused of illegal iGaming activities

In the United States, the law firm Burwick Law has initiated a class action lawsuit against the Pump.fun platform designed to launch meme tokens, as well as against the developers of the Solana blockchain - Solana Labs, Solana Foundation, Jito Labs and Jito Foundation. They are accused of creating an illegal network that essentially functions as an unlicensed online casino.

The plaintiffs allege that the platform has turned meme token trading into a game of chance, where ordinary market participants find themselves at a disadvantage due to the advantages of insiders and automated bots gaining priority access to trades. The lawsuit alleges the organisation of racketeering using front-running methods - when certain validators under the control of Jito Labs are able to get ahead of ordinary users.

Companies in the Solana ecosystem, including Solana Labs and the Solana Foundation, have been accused of making profits through transaction fees and the rise in the value of its native SOL token. For their part, Jito Labs and the Jito Foundation allegedly provide the technical infrastructure for market manipulation, which increases control over the course of trading.

Burwick Law, known for lawsuits against crypto platforms, has previously filed cases against the PNUT and Hawk Tuah projects, where allegations of manipulation and violations of user rights also appeared. The new lawsuit puts the cumulative losses of investors from trading meme tokens on the Pump.fun in the range of $4 billion to $5.5 billion.

Thus, the case against Solana and Pump.fun draws attention to the problems of regulating crypto assets and the growing risk of illegal schemes disguised as investment projects or gaming platforms.