Whistleblower Reveals Over 5,000 Secret Chats in Pump.fun MEV Controversy

Whistleblower Reveals Over 5,000 Secret Chats in Pump.fun MEV Controversy — Lawsuit Intensifies

A recent development in a class-action lawsuit related to the Solana-based memecoin platform Pump.fun reveals new evidence from a whistleblower. Bringing forth more than 5,000 internal chat messages, this new information is believed to shed light on allegations of insider trading and transaction manipulation. U.S. District Court Judge Colleen McMahon has allowed the plaintiffs to amend their complaint, paving the way for the case to cover broader claims regarding maximal extractable value (MEV).

Key Takeaways

A U.S. federal judge permitted new evidence in a class-action lawsuit against Pump.fun and related entities.
A whistleblower disclosed nearly 5,000 internal messages indicating potential insider trading.
The plaintiffs claim that insiders received unfair priority in token launches, leading to significant retail losses.
The case highlights increasing scrutiny and legal challenges surrounding MEV practices in blockchain transactions.

Whistleblower Reveals Over 5,000 Secret Chats in Pump.fun MEV Controversy — Lawsuit Intensifies

Pump.fun MEV Lawsuit: Insider Trading Allegations

A U.S. federal judge has granted permission to include additional evidence in an extensive class-action lawsuit against the Solana-based memecoin platform Pump.fun. This decision comes after a whistleblower revealed nearly 5,000 internal chat messages, which plaintiffs claim expose insider trading and manipulation of transactions.

On December 9, 2025, Judge Colleen McMahon of the U.S. District Court for the Southern District of New York allowed the plaintiffs to revise and resubmit their complaint against Pump.fun, as well as against MEV infrastructure provider Jito Labs, the Solana Foundation, Solana Labs, and relevant executives.

Allegations of Retail Losses and Insider Priority

This ruling enables the case to move forward with more detailed allegations focused on maximal extractable value (MEV). MEV is a contentious practice that enables validators or advanced traders to earn profits by altering the order of transactions within a blockchain.

The lawsuit was filed by plaintiffs Diego Aguilar, Kendall Carnahan, and chief plaintiff Michael Okafor, on behalf of investors who purchased tokens from Pump.fun between March 1, 2024, and July 23, 2025, subsequently experiencing financial losses. The plaintiffs contend that the defendants orchestrated a coordinated effort known as the “Pump Enterprise,” secretly granting insiders priority access to newly launched tokens, while publicly presenting these token launches as fair and resistant to scam risks.

According to the allegations, the validator infrastructure from Solana Labs permitted control over transaction ordering, while tools from Jito Labs allowed specific participants to pay for enhanced execution priority.

Pump.fun is accused of functioning as the public platform that launched these tokens, collected fees on transactions, and promoted a narrative of fair launch practices, even while supposedly aware that some insiders had structural advantages.

The plaintiffs claim these insiders were able to acquire tokens at lower prices before public trading began, which led to sharp price surges through automated bonding curves, ultimately leaving retail investors to bear the losses once insiders sold their holdings.

Judge McMahon mentioned that the new evidence, initially uncovered by a confidential informant in September 2025, was not previously accessible and that the plaintiffs made diligent efforts to amend their complaint. However, she declined a request to submit additional materials confidentially, emphasizing the need for fairness and transparency.

In accordance with the court’s timeline, plaintiffs need to file their second amended complaint by December 19, with deadlines for motions to dismiss set for January 23, 2026.

MEV's Growing Legal Concerns — Following Ethereum, Now Solana

This lawsuit builds upon prior legal actions initiated in July that accused Pump.fun of operating an illicit “meme coin casino,” purportedly generating over $722 million in revenue while causing losses estimated between $4 billion and $5.5 billion for retail traders.

Court documents state that the platform manages cumulative trading volumes in the tens of billions and daily launches of tens of thousands of tokens, with a majority of user addresses failing to achieve significant profits.

Central to this dispute is MEV, a practice increasingly observed across major blockchain networks. It involves extracting profits by manipulating the order of transaction processing, often through techniques like front-running or sandwich attacks.

Research referenced in recent legal filings and industry reports indicates that MEV bots currently occupy a considerable portion of blockspace on Solana and Ethereum networks, leading to increased transaction fees and uneven experiences for typical users.

The legal focus on MEV has heightened in light of criminal cases related to similar practices. A notable case involved two MIT-educated brothers, Anton and James Peraire-Bueno, who faced charges for wire fraud and money laundering after reportedly exploiting Ethereum’s validator infrastructure to gain $25 million in mere seconds. Although the jury was unable to reach a verdict, this case was a landmark in terms of criminal prosecution connected to MEV manipulation, underlining the challenges faced by courts in applying traditional fraud laws to blockchain operations.