VISI.NEWS | BANDUNG – Legal firm Burwick Law has filed an updated complaint in the case Aguilar v. Baton Corporation Ltd. (Case No. 1:25-cv-00880) in the U.S. District Court for the Southern District of New York.
The lawsuit targets Baton Corporation the parent company of Pump.fun and Solana Labs, alleging their involvement in an illegal gambling operation facilitated through a memecoin launch platform on the Solana blockchain.
The documents allege shocking details, including illicit revenues exceeding $3.18 billion from what is described as a ‘Meme Coin Casino’ operated by Pump.fun and Jito Labs. According to the complaint, this digital gambling scheme uses speculative token launches to lure users into depositing funds with the hope of quick profits resembling a manipulated slot machine.
Key Allegations from the Filing:
* Gambling Mechanics: Pump.fun is portrayed as an interactive slot machine, where users deposit SOL tokens to launch new tokens with unpredictable outcomes. Most launches complete within minutes to 24 hours, often resulting in financial losses for late participants.
* Role of Solana Labs & Jito Labs: Solana Labs and the Solana Foundation are accused of providing blockchain infrastructure, while Jito Labs allegedly manipulated transaction orders in favor of those who paid the highest bribes. Both entities are said to have profited through block space sales, validator fees, and SOL appreciation.
* Speculative Business Model: The Solana ecosystem is described as driven not by real economic utility but by high transaction volumes and bribery incentives, which in turn inflate the SOL token price and attract speculative capital.
* Scale of Profits: Since July 2022, Pump.fun has allegedly generated over $722.85 million in illegal revenue. Across the Solana ecosystem, gambling-related income is reported to have exceeded $3.18 billion. In 2024, 82% of all tokens traded on Solana were linked to Pump.fun, with daily revenue occasionally surpassing $5 million.
Legal and Industry Impact
Legal analysts say this lawsuit could force token-launch platforms to implement KYC protocols and reform their business models, potentially signaling the end of the memecoin ‘wild west.’ A successful outcome for the plaintiffs could set a legal precedent by classifying platforms like Pump.fun as unlicensed digital casinos under U.S. law.
The lawsuit is part of a broader regulatory crackdown on crypto in the United States, including SEC probes into insider trading and money laundering. Data shows that Pump.fun’s trading volume has dropped 94% since January 2025, while token launches are down 83%, suggesting that the platform was already under mounting pressure.
The original complaint, filed in June 2025, requested 90 days for further investigation. The newly amended version reflects recent discoveries and development.
Not financial advice do you own research
@gvr
