The new class lawsuit claims Sola me-The Basic MEME COIN FACTORY PUMP.FUN provides automated tools to allow the producers to launch more than 50,000 tokens, operating illegal securities exchanges to strengthen the $ 50 billion MEME COIN market. It can be exposed.
The complaint, which was submitted to the southern district court in New York, made the parent company Baton Corporation, headquartered in the UK of the pump, was able to collect almost $ 500 million through a 1%mandatory fee than all transactions, enabling a wide range of securities law violations. .
Pump.fun co -founder and Coo Alon Cohen then refused to comment. decoding I contacted them with a question about how to participate in the lawsuit.
The other two co -founders, CTO Dylan Kerler and CEO Noah Tweedale decoding In the press time.
what’s this?
Aguilar V. Baton Corp. LTD. includes three tokens in this litigation: the first conviction raccoon (Fred), FWOG and Griffain.
This token shows how to continue to produce securities according to the Howey Test, a standard used to determine whether a transaction can be considered an investment contract, according to the Howey Test.
If the money of money is invested in a general company with a profit expected by other people’s efforts, it means security.
But in order to allow legally, Howey tests must prove all four factors: investment, financial results, expectations and their sources.
Claim
Court document decoding The platform argues that it has maintained centralized control through the essential templates, integrated price pricing mechanisms and standardized liquidity management that is applied to all tokens.
This case can set a precedent for whether an automated token creation tool is essentially producing securities.
Baton company executives are faced with further investigations on their roles. The court submitted a direct profit by promoting the unregistered securities proposal through the platform’s commission structure.
Since these lawsuits have begun, according to Dune Analytics’ dashboard, the daily profit of the lawsuit has dropped to about $ 4 million on average.
The platform has previously faced a user’s pushback. Last November, decoding PUMP.FUN deals with how to host live streaming content related to the threat of animal abuse, self -harm and violence. Following this report, pump.fun disabled the live stream function according to the application range of other encryption media publications.
Baton Corporation must respond to charges by February 20.
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