Burwick now alleges that Solana Labs and Jito Labs were not just infrastructure providers but active participants in what it describes as a fraudulent online gambling and money transmission scheme.
According to the filing, the two firms are accused of knowingly facilitating Pump.Fun’s business operations, which included rapid-fire token launches and fee extraction from retail traders.
The lawsuit claims that the project functioned as a disguised gambling system with no regulatory compliance, investor protections, or identity checks, enabling illicit activities such as money laundering.
One example cited in the complaint involves the North Korea-linked Lazarus Group, which allegedly used Pump.Fun’s infrastructure to launch a memecoin named “QinShihuang” and funnel funds linked to the Bybit exchange hack.
The coin’s trading volume reportedly surged to $26 million shortly after launch, allowing the group to convert proceeds into Solana’s native token, SOL.
Burwick also asserted that Solana Labs and its foundation, operating out of Switzerland, structured their activities to avoid U.S. regulatory oversight while continuing to benefit from U.S.-based trading volume and market activity.
Meanwhile, Jito Labs is alleged to have provided validator and MEV tooling that allowed the system to scale and profit from user activity.
In addition to accusing Pump.Fun of operating without proper licensing, Burwick has now charged all named parties under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
The filing alleges a coordinated enterprise designed to extract revenue through pseudonymous trading activity while circumventing laws meant to protect consumers and ensure fair financial practices.
The lawsuit also notes a sharp decline in Pump Fun’s usage metrics since earlier peaks, including a drop in daily token launches and trading volume. Competitor Bonk Fun has reportedly overtaken Pump Fun in market share, posting $165 million in daily volume compared to Pump.Fun’s $41 million.
While claims of unregistered securities remain specific to Pump.Fun, Burwick has added fraud, deceptive marketing, and unjust enrichment counts against all co-defendants, arguing they actively benefited from an ecosystem built on speculative hype and regulatory evasion.
