Pump.Fun in Legal Trouble amid Growing Speculations?
Pump.Fun to Face Criminal Charges for Inefficient Moderation?
Solana’s Pump. Fun to Undergo Criminal Investigation?
As mentioned in our earlier posts, Solana’s Pump.Fun suspended its live streaming after it faced significant backlash over reported abuse. We also mentioned the resulting concerns surrounding the ongoing developments in the crypto market, and whether or not the Launchpad would resume the feature again anytime soon.
Now, the platform may have to face criminal investigations as well as civil lawsuits. Read on to know more.
Live Streaming Gone All Wrong
Pump.Fun’s broadcast feature went wrong when the developers started using it to broadcast content that’s been received as extremely shocking. With the intent of promoting their tokens, the users crossed all lines by making use of suicide threats, animal abuse as well as pornography.
As a result, Pump Fun pulled the plug on its livestream for an indefinite amount of time, while the developers faced no consequences other than their content getting removed from the platform.
Holder of the Year’s Runaway Success Stories
Pump.Fun has in past given birth to several scams and rug pulls and achieved several milestones meanwhile. However, it remains away from facing any regulatory actions till now. This may now change as the recent uproar seems to have been heard by the legal authorities with legal experts giving opinions on the matter. There is talk on the subject all around including that among the crypto enthusiasts and on social media.
Pump.Fun’s co-founder Alon has admitted on its moderation not being perfect to efficiently avoid such NSFW content. The platform does claim to prevent rug pulls, but it does not make it difficult enough for the visitors to act opposite.
Talk of the Town
A debate has begun on whether channels like X and YouTube should be held responsible for all content shared on their platforms. The platforms hosting user-generated content have immunity as per the US’s Section 230 of the Communication Decency Act. But they are to be considered liable if they fail to remove harmful content, especially knowingly.
What can be the legal Concerns for Pump.fun?
As per some, either Pump.fun needs to take strict moderation steps to stop this, or the law needs to intervene and stop the platforms from functioning. Such incidents can lead to a complete shutdown once and for all.
Pump.fun can be charged for wire fraud, which is a form of white-collar crime that happens over electronic means such as the internet. Apart from fearing the Department of Justice, the platform may have to worry over its violation of the Securities Act and the relevant European Union regulations as well.
