Solana Labs cleared in Pump Fun lawsuit as RICO claims persist against Baton Corp. Verified 37 votes Updated 7 hours ago Judge Colleen McMahon tossed claims against Solana Labs and the Solana Foundation - along with their executives - from the Pump Fun lawsuit. The ruling came down as part of a broader set of decisions on motions to dismiss filed in the case brought by Burwick Law. The dismissal is a clean win for Solana Labs. But the lawsuit isn't going away. Racketeering allegations - wire fraud, illegal gambling, unlicensed money transmission - survived against Pump Fun's parent company, Baton Corporation, and its three named executives: Noah Bernhard Hugo Tweedale, Alon Cohen, and Dylan Kerler. Those claims were brought by plaintiffs Carnahan and Okafor. A separate set of RICO claims from plaintiff Aguilar, though, didn't make it through. McMahon dismissed those. So the picture is messy. Some claims live, some die, and the parties left holding the bag are Baton Corp and its leadership. Discover more Exchanging Foreign Currency Tracking Market Trends Selecting Payment Gateways Memecoins FRED and GRIFFAIN Don't Count as Securities. McMahon also knocked out the Securities Act allegations against Pump Fun. The argument was that the platform offered unregistered securities - but the judge didn't buy it, at least not for the memecoins at the center of the case. FRED and GRIFFAIN, she ruled, don't form a "common enterprise" under the Howey Test. No common enterprise, no securities classification. That's basically the legal floor here. Ariel Givner, founder of a crypto law firm, pushed back a bit on the broader takeaway. Not all memecoins get that pass, she said - it's specific to situations where no shared profit goal exists between the token issuer and investors. Worth keeping in mind. The ruling doesn't create a blanket shield for the memecoin space. Trading Digital Currencies Unjust enrichment claims got tossed too. 25 unnamed KOLs still a problem for Burwick Law. Here's where things get complicated for Burwick Law. The firm has 25 unnamed key opinion leaders - KOLs - in the suit, accused of promoting Pump Fun tokens while hiding both their compensation and their existing stakes in those tokens. Problem is, Burwick Law hasn't managed to serve them. The lawsuit kicked off in January 2025, and these individuals still haven't been properly identified and served. Discover more Tracking Market Trends Exchanging Foreign Currency Finance News McMahon pressed Burwick Law on that. Hard. The firm now has until September 10 to explain why those claims shouldn't be dismissed outright for failure to identify and serve the defendants. That's a tight window, and probably not a comfortable position to be in. Among the named defendants is a crypto influencer who goes by "Scooter." He's threatened to counter-sue Burwick Law for defamation. No details yet on whether that actually moves forward - unclear - but it's the kind of escalation that makes already messy litigation messier. The original lawsuit pulled in Solana Labs and Jito Labs together. The theory was that both entities worked to sidestep US securities laws and pull capital out of the US market without giving investors the protections or disclosures they'd normally be entitled to. Serious stuff. But Burwick Law voluntarily dropped Jito Labs from the case months after filing, long before McMahon ruled on anything. Now Solana Labs is out too, by court order. Taking Economics Courses Discover more Tracking Market News Tracking Market Trends Selecting Payment Gateways That's a significant narrowing of the defendant list. What started as a wide-net lawsuit targeting major infrastructure players in the Solana ecosystem has pulled back considerably. Baton Corporation and its executives are now the main targets left standing. The $1.5 billion fraud figure that was floated when Jito Labs was still in the case hasn't disappeared from the conversation entirely, but the legal strategy around it has clearly shifted. Burwick Law is recalibrating. Whether that's by choice or by necessity - probably both - is hard to say from the outside. The KOL problem is real, though. If those 25 individuals can't be identified and served, that chunk of the case could collapse before it even gets going. Courts don't wait forever, and McMahon's September 10 deadline makes that plain. Crypto influencer liability in token promotion cases is still pretty murky legal territory across the board. Regulators and plaintiffs' attorneys have been circling it for a while, but cases like this one are where the actual lines get drawn - or don't. Burwick Law's ability to keep those KOL claims alive may say a lot about how far courts are willing to go in holding promoters accountable for undisclosed paid endorsements. Trading Digital Currencies For now, Solana Labs walks away clean. Baton Corp does not. Frequently asked questions. Why were Solana Labs and Solana Foundation dismissed from the Pump Fun lawsuit? What RICO claims survived the court's rulings? Why does Burwick Law have until September 10 to respond to the court? Why it matters. The dismissal of claims against Solana Labs and its executives reinforces the company's legal standing, potentially bolstering investor confidence in the Solana ecosystem amid ongoing regulatory scrutiny within the cryptocurrency space. However, the survival of RICO claims against Baton Corp highlights the continuing risks and challenges facing projects associated with alleged fraudulent activities, which could impact market perceptions and the operational landscape for similar ventures in the sector. Community Trust Index High Confidence Real Taking Economics Courses 89% 11%Fake 37 community signals Post Views: 35

Solana Labs dropped from Burwick Law's Pump Fun lawsuit. Judge Colleen McMahon has dismissed Burwick Law's claims against Solana Labs, Solana Foundation, and its execs as part of the ongoing Pump Fun lawsuit. Yesterday's court filing revealed McMahon's orders that either denied or approved Pump Fun's various motions to dismiss allegations put forward by Burwick Law. Racketeering (RICO) allegations that accuse Pump Fun's parent company, Baton Corporation, and its executives, Noah Bernhard Hugo Tweedale, Alon Cohen, and Dylan Kerler, of wire fraud, illegal gambling, and unlicensed money transmission were upheld. These two allegations were submitted by plaintiffs Carnahan and Okafor, but RICO claims put forward by the plaintiff Aguilar were dismissed. Pump Fun memecoins FRED and GRIFFAIN are not securities. The judge also dismissed allegations that Pump Fun defendants broke the Securities Act by offering unregistered securities. They claim the two memecoins FRED and GRIFFAIN did not entail a "common enterprise" and, as such, do not fulfill the Howey Test. Crypto law firm founder Ariel Givner has noted, however, that this ruling does not mean all memecoins aren't securities. She stressed this ruling only applies when a memecoin does not offer a shared goal of profits rising for everybody. Allegations of unjust enrichment were also dismissed from the suit. Burwick Law hasn't served 25 unnamed KOLs yet. The judge has also asked Burwick Law to explain why it hasn't been able to serve 25 key opinion leaders (KOLs) since the lawsuit was filed in January 2025. It accused the unnamed KOLs of promoting Pum Fun tokens and, in some cases, "concealing both their compensation and their own preexisting positions in the tokens they promoted." Burwick Law has until September 10 to explain why these KOL claims "should not be dismissed for failure to identify and serve them." The crypto influencer "Scooter" was named as one of these defendants in a previous filing. They shortly threatened to sue Burwick Law for "potential defamation." Solana Labs and Jito Labs were added last year. Burwick Law's lawsuit added Solana Labs and Solana Foundation over a year ago. It claimed the two worked together to avoid US securities laws and extract capital from the US market. It argued that Solana crypto infrastructure provided "no investor protections, disclosure obligations, or legal accountability" for the memecoin craze and its losses. Jito Labs was also added alongside Solana Labs as a lawsuit defendant. However, Burwick Law voluntarily dropped Jito Labs months later. Got a tip? Send Protos an email securely via Protos Leaks. For more informed news and investigations, follow Protos on X, Bluesky, and Google News, or subscribe to its YouTube channel.