An amended class-action lawsuit filed in New York accuses memecoin platform Pump.fun of extracting over $5.5 billion from users through deceptive schemes. The lawsuit names Pump.fun’s operators, parent company Baton Corp., and infrastructure partners Solana Labs and Jito Labs as defendants, alleging a coordinated enterprise akin to an “unlicensed casino.”

The amended complaint against Pump.fun adds RICO claims, fraud, aiding and abetting, civil conspiracy, and unjust enrichment to the lawsuit. Plaintiffs seek rescission of all Pump.fun transactions and compensatory damages, alleging that Solana-affiliated entities facilitated the scheme through the Solana blockchain and liquidity infrastructure provided by Jito Labs and Jito Foundation.

Two major early investors in Pump.fun’s PUMP token offloaded over $160 million worth of tokens, triggering concerns of a broader sell-off. Nearly 60% of presale participants have sold or transferred their tokens, contributing to downward price pressure despite Pump.fun raising nearly $500 million in its ICO.

Read more at Cointelegraph: Pump.fun Lawsuit Alleges $5.5B Slot Machine-Like Scheme