On November 24, 2025, Pump.fun, the leading Solana-based memecoin launchpad, faced explosive accusations from on-chain analytics firm Lookonchain of cashing out $436.5 million in USDC since October 15. The platform swiftly denied the claims, stating, “complete misinformation from @lookonchain again. $0 has been cashed out – we’re not involved in the transactions between Kraken and Circle,” per. This denial, posted by team member Sapijiju, came amid a 22% drop in PUMP token price to $0.002626, below its June private sale price. X posts from @EmberCN amplified the drama, linking funds to a June institutional sale.
Lookonchain traced 405 million USDC deposited to Kraken from Pump—fun wallets, coinciding with 466 million USDC transferred from Kraken to Circle, suggesting a cash-out. The funds originated from a June 2025 private PUMP token sale to institutions. Additionally, Pump.fun sold 4.19 million SOL ($757 million) between May 19, 2024, and August 12, 2025, at an average $181, raising treasury management questions. This follows earlier sales of 503,343 SOL ($78.7M) from total earnings of $162M, respectively. The timing aligns with a $19 billion market crash post-October 15, weakening memecoin liquidity.
Pump.fun insisted the transfers were “treasury management” for re-allocating ICO proceeds, not liquidation, per. Despite the denial, PUMP slid to $0.002491 intraday before recovering slightly to $0.002723, per. The community is divided: some express outrage over potential “rug pull” fears, while others await evidence. X posts from @mpost_io and @crynetio highlight the platform’s 2.5 million meme tokens launched, but question its integrity amid fading memecoin hype, per. No detailed counter-evidence has been provided beyond the statement.
This saga underscores transparency risks in DeFi platforms, with Pump—fun’s $162M earnings under scrutiny, per. If allegations hold, it could trigger regulatory probes under the SEC’s digital asset securities framework, per Coinlaw.io. The memecoin sector, down 48% in August revenue, faces further erosion of trust, per. Solana (SOL) ($184.50) and USDC remain stable, but investor caution prevails, per CoinMarketCap. Broader implications include heightened on-chain monitoring and demands for audits.
Pump. Fun’s silence on X since the denial fuels speculation, but resolution could set precedents for platform accountability, per. Investors can verify claims using blockchain explorers like Solscan or Etherscan, cross-referencing with Lookonchain data. Monitor Kraken and Circle flows via CryptoQuant. PUMP may rebound to $0.0088 if cleared, but downside to $0.002 risks persist, per TradingView. Diversify into USDC or ETH ($4,070) with stop-losses below SOL’s $170 per. Follow @TheBlock__ on X for updates. This controversy highlights the need for robust DeFi governance amid 22025’sbull run.
