Not Just Pump.Fun: Solana Joins the Defendant List

A lawsuit has been filed against Pump.Fun in the Southern District of New York. The platform is accused of running an unlicensed zero-sum gambling operation, where the odds are heavily stacked against the average user.

But here’s the real twist: the suit also names Solana Labs and the Solana Foundation as co-defendants. According to the filing, they’re not just infrastructure providers, but active participants who profit from the operation - by earning fees from blockchain transactions and by benefiting from the rising price of SOL.

Wait a second - aren’t gas fees on Solana supposed to go to the network’s validators? Not directly to Solana Labs or the Foundation. Or... are they part of the validator set too?

If that’s the logic, then any validator could potentially be sued for the content of the blocks they sign. And that leads to a serious dilemma:

• Refuse to sign a block - get penalized by the Solana protocol.
• Sign it - risk getting sued.

This highlights a key vulnerability of Proof-of-Stake systems. Even if this lawsuit doesn’t succeed, similar attacks are likely to follow.

Think SOL still has room to grow? Come trade it at rabbit.io - always the best rates.

Not convinced SOL is the future? That’s fine too - we’ve got a wide range of coins that don’t come with this kind of legal baggage: BTC, LTC, XMR, DOGE, and many more.