- Solana Labs and Jito Labs face fraud claims for aiding Pump Fun in a $1.5 billion memecoin scheme.
- Lawsuit says Pump Fun operated like a gambling site without licenses or proper identity checks.
- Lazarus Group allegedly used Pump Fun to move hacked funds through memecoin trades and convert into SOL.
Solana Labs and Jito Labs have been added as co-defendants in a federal lawsuit tied to the Pump.Fun platform. The amended complaint was filed on July 22 in the Southern District of New York by Burwick Law. The suit alleges the two firms played an active role in a $1.5 billion fraud scheme involving memecoin launches.
Allegations of Active Participation
Originally filed against Pump.Fun and its affiliates, the lawsuit now claims Solana Labs and Jito Labs went beyond offering infrastructure. The filing accuses them of directly supporting Pump.Fun’s operations. These operations included fast token launches and fee generation targeting retail traders.
According to the complaint, Pump.Fun ran as a disguised gambling platform. The project allegedly operated without investor protections or proper compliance checks. Users could launch tokens without identity verification. This structure allegedly made the platform vulnerable to criminal abuse.
North Korea-Linked Activity Identified
The lawsuit highlights a specific example involving the Lazarus Group. The North Korean-linked group allegedly used Pump.Fun to launch a memecoin called “QinShihuang.” The filing claims they funneled proceeds from the Bybit exchange hack through this coin. Trading volume for the coin reached $26 million, which was then converted into Solana’s SOL token.
Burwick Law alleges Solana Labs structured its foundation in Switzerland to avoid U.S. oversight. However, the foundation still reportedly profited from U.S. trading activity. Jito Labs is accused of enabling the platform to scale. It allegedly provided validator and MEV tooling that enhanced transaction efficiency and revenue extraction.
RICO Charges and Regulatory Concerns
All parties are now charged under the Racketeer Influenced and Corrupt Organizations (RICO) Act. The suit describes a coordinated enterprise aimed at revenue extraction while avoiding financial regulations. Pump.Fun is also accused of operating without proper licenses and violating anti-money laundering standards.
The lawsuit notes a decline in Pump.Fun’s platform activity. Daily token launches and trading volume have dropped significantly in recent months. Competing platform Bonk Fun now leads the sector with $165 million in daily volume. In contrast, Pump.Fun has fallen to $41 million.
Additional Legal Counts Added
Besides the original securities violations, the filing includes new counts of fraud and unjust enrichment. The complaint argues that all involved parties benefited from a speculative and unregulated system. They allegedly used pseudonymous trading to gain financial advantage while bypassing U.S. laws.
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