- Pump.fun and founder’s X accounts were suspended alongside 20 meme coin projects, leading to fears of censorship and regulation.
- The platform faces legal action for unregistered securities and was banned by the U.K. FCA for fraud and weak KYC/AML practices.
- The suspension coincided with plans for a $1B token sale, raising concerns about timing, transparency, and investor confidence.
Pump.fun, a Solana-based meme coin platform, faced a temporary account suspension on X (formerly Twitter) on Monday, June 17. The platform’s founder, Alon Cohen, also had his account suspended during the same period.
Although the exact cause of the suspension remains unconfirmed, the move affected several other meme coin-related accounts. Around 20 projects, including GMGN, Bloom Trading, and BullX, experienced similar restrictions.
Most accounts, including Pump.fun’s, have since been restored. However, the action led to widespread debate on crypto Twitter regarding regulatory oversight and centralized control on social media platforms.
Scrutiny Against Meme Coin Projects
The timing of the suspension raised questions due to Pump.fun’s ongoing legal challenges. Earlier this year, the platform was hit with a lawsuit alleging it operated as an unregistered securities issuer.
The case claims that Pump.fun collected nearly $500 million in fees while promoting meme coins in a pattern resembling pump-and-dump schemes. According to the suit, the project misled investors while pushing volatile meme tokens.
Additionally, the U.K.’s Financial Conduct Authority banned Pump.fun for operating without proper authorization. The FCA also cited concerns over fraud risks, inadequate KYC/AML procedures, and marketing practices that allegedly targeted minors. These allegations have placed the platform under intense scrutiny from regulators and the broader crypto community.
Alleged API Violations and Concerns Over Censorship on X
While no official explanation came from X, speculation suggests the suspensions could stem from unauthorized use of X’s API. Several users believe the affected projects accessed X data without subscribing to premium access services.
Others tied the incident to the SEC, suggesting the regulator may be monitoring the platform’s activities. Notably, Pump.fun had previously faced pressure for issuing unregistered tokens, including the controversial Peanut the Squirrel (PNUT) token.
Despite the platform’s accounts being reinstated, its website and operations remained active during the suspension. Other affected platforms like GMGN stated via Telegram that they were appealing the decision and investigating the matter internally. GMGN assured its users that all services remained uninterrupted during the disruption.
Token Sale Plans Raise Timing Concerns
The suspensions came as Pump.fun is preparing for a $1 billion token sale, reportedly set at a $4 billion valuation. Some community members expressed concerns that the platform’s account ban could disrupt this launch.
Since X is a major communication channel for such projects, the timing added pressure to an already sensitive situation. Pump.fun’s team had not finalized details of the proposed revenue-sharing structure involving its decentralized exchange, PumpSwap.
The plan may include a buyback mechanism for PUMP token holders. However, Alon Cohen had previously denied rumors of any token launch, adding more uncertainty to the timeline.
Pump.fun’s Challenges
The series of account suspensions, combined with existing legal action, have intensified scrutiny on Pump.fun’s operations. Allegations of unregistered token sales, questionable marketing practices, and possible regulatory violations continue to surface.
The X suspension, although temporary, shows the increased sensitivity surrounding meme coin platforms as they grow in scale and influence. With a $1 billion token sale nearing, the project is under close observation from both authorities and the wider market.
