A U.S. federal judge has allowed new evidence to be added to a sprawling class-action lawsuit tied to Solana-based memecoin platform Pump.fun.

This happened after a whistleblower resurfaced with nearly 5,000 internal chat messages that plaintiffs say shed new light on alleged insider trading and transaction manipulation.

In a December 9, 2025 order filed in the U.S. District Court for the Southern District of New York, Judge Colleen McMahon granted plaintiffs permission to amend and refile their complaint against Pump.fun, MEV infrastructure firm Jito Labs, the Solana Foundation, Solana Labs, and related executives.

Retail Losses, Insider Priority Alleged in Pump.fun MEV Lawsuit

The decision clears the way for the case to proceed with expanded factual allegations centered on maximal extractable value, or MEV.

This controversial practice allows validators or sophisticated traders to profit by reordering transactions within a blockchain block.

The lawsuit was brought by Diego Aguilar, Kendall Carnahan, and lead plaintiff Michael Okafor on behalf of investors who purchased tokens launched on Pump.fun between March 1, 2024 and July 23, 2025 and later incurred losses.

Plaintiffs allege the defendants operated what they describe as a coordinated “Pump Enterprise” that secretly gave insiders priority access to newly launched tokens while marketing those launches to the public as fair and resistant to rug pulls.

According to the complaint, Solana Labs’ validator infrastructure allegedly enabled transaction ordering control, while tools developed by Jito Labs allowed certain participants to pay for priority execution.

Pump.fun is accused of acting as the public-facing venue that launched the tokens, collected fees on every trade, and promoted a fair-launch narrative despite allegedly knowing insiders had structural advantages.

Plaintiffs say insiders bought tokens at low prices before public trading, triggering rapid price increases through automated bonding curves and leaving retail buyers to absorb losses once insiders exited.

Judge McMahon said the new evidence, supplied by a confidential informant who reappeared in September 2025, was not previously available and that plaintiffs acted diligently in seeking to amend their filing.

She rejected, however, a request to submit additional material under seal and outside the defendants’ view, citing fairness and transparency concerns.

Under the court’s schedule, plaintiffs must file their second amended complaint by December 19, with motions to dismiss due by January 23, 2026.

After Ethereum, Now Solana: MEV Faces Growing Legal Reckoning

The case builds on earlier litigation filed in July accusing Pump.fun of operating an illegal “meme coin casino” that allegedly generated more than $722 million in revenue while inflicting between $4 billion and $5.5 billion in losses on retail traders.

Court filings claim the platform processes tens of billions of dollars in cumulative trading volume and launches tens of thousands of tokens daily, while the vast majority of user addresses fail to realize meaningful profits.

At the center of the dispute is MEV, a practice that has become increasingly prevalent across major blockchains.

MEV involves extracting profit by influencing the order in which transactions are processed, often through front-running or sandwich attacks.

Research cited in recent court filings and industry reports shows MEV bots now consume a substantial share of blockspace on Solana and Ethereum-based networks, contributing to higher fees and uneven execution outcomes for ordinary users.

The legal scrutiny around MEV has intensified following criminal cases tied to similar tactics.

In one closely watched matter, two MIT-educated brothers, Anton and James Peraire-Bueno, were charged with wire fraud and money laundering after allegedly exploiting Ethereum’s validator layer to extract $25 million in seconds.

Although a jury later failed to reach a verdict, prompting a mistrial, the case marked the first criminal prosecution centered on MEV manipulation and shows the difficulty courts face when applying traditional fraud statutes to blockchain mechanics.

The post Whistleblower Drops 5,000+ Secret Chats in Pump.fun MEV Scandal — Lawsuit Intensifies appeared first on Cryptonews.

• Lookonchain reported $436.5 million in USDC moved to Kraken.
• Project revenue fell to $27.3 million in November.
• Wallets still held over $855 million in stablecoins and $211 million in SOL.

Pump.fun’s internal fund activity has drawn intense scrutiny after pseudonymous co-founder Sapijiju challenged claims that the project cashed out more than $436 million in stablecoins.

The discussion began when blockchain analytics platform Lookonchain reported that wallets linked to the Solana memecoin launchpad had transferred large amounts of USDC to the crypto exchange Kraken.

The activity raised fears of selling pressure and uncertainty about how the project handled its reserves.

The story quickly spread across X, where users analysed the movement of funds, debated the project’s finances, and questioned the clarity of the explanations offered.

USDC flows tied to internal management

In an X post, Sapijiju said the transfers were part of Pump.fun’s treasury management process and were not sales.

The post said the USDC originated from the PUMP token’s initial coin offering and was moved between internal wallets to support the company’s runway and reinvestment plans.

The post also stated that Pump.fun had never worked with Circle.

Treasury management typically involves reorganising wallets, allocating capital, and preparing budgets, and does not always indicate selling or liquidation.

Lookonchain’s report said the transfers to Kraken had reached $436.5 million in USDC since mid-October.

The timing drew more attention because Pump.fun’s monthly revenue had fallen to $27.3 million in November, its first drop below $40 million since July, according to DefiLlama.

Despite the concerns, data from DefiLlama, Arkham, and Lookonchain showed that the Pump.fun-tagged wallet still held more than $855 million in stablecoins and $211 million in Solana SOL, which traded at $136.43.

Analysts and community respond

Nansen research analyst Nicolai Sondergaard interpreted the reported transfers as a sign that more selling could follow.

In contrast, EmberCN suggested the activity reflected institutional private placements of the PUMP token rather than active dumping.

The competing interpretations led to a broader review of the token’s performance and project structure.

CoinGecko data showed that PUMP traded at $0.002714, down 32% from its ICO price of $0.004 and almost 70% below its September high of $0.0085.

Currently, PUMP is trading at $0.002738, rising 6.9% in the past 24 hours.

The price movement added more tension to community discussions as users examined whether the treasury actions aligned with the token’s market conditions.

Across X, multiple posts highlighted the divide in sentiment.

Some users argued that the explanation raised more questions, pointing to inconsistencies and asking for clearer communication.

Others dismissed the statement entirely and linked the treasury activity to concerns about token performance and execution.

A separate group of users said Pump.fun had the right to manage its revenue, ICO proceeds, and reserves as it saw fit.

They described treasury movements as common practice after an ICO and said the main issue was whether USDC reserves properly backed the circulating supply.

Treasury structure becomes central issue

As more users examined the fund flows, the debate shifted from selling pressure to the broader structure of Pump.fun’s treasury.

The discussion focused on the scale of reserves, how the project organised its wallets, and whether the team provided enough visibility into its financial management.

The presence of more than $855 million in stablecoins indicated that large amounts of capital remained under project control, but users continued to question the timing, communication, and purpose behind the transfers.

The situation highlighted how treasury management can become a point of market sensitivity, especially when combined with falling revenue, volatile token prices, and community scepticism.

With attention across X still focused on the movements, the conversation has moved toward transparency expectations, reserve backing, and the company’s approach to supporting long-term development.

The post Pump fun treasury concerns rise as USDC transfers trigger community debate appeared first on CoinJournal.