Solana Foundation is involved in RICO lawsuit, PumpFun faces federal felony charges in the United States

U.S. law firm Burwick Law filed an amended complaint on January 8th in federal court, accusing PumpFun operator Baton Corp as well as Solana Foundation, Solana Labs, and some executives of violating the Racketeer Influenced and Corrupt Organizations Act (RICO). This is not only an allegation against the PumpFun platform but also involves core participants in the Solana ecosystem, with the case’s complexity and scope exceeding expectations.

Key Information of the Lawsuit

Defendants lineup

The defendants involved in this lawsuit include:

• Baton Corp (PumpFun operator)
• Solana Foundation
• Solana Labs
• Some executives (specific names not publicly disclosed)

This combination is noteworthy — not only is PumpFun, focused on token issuance, being sued, but even infrastructure providers within the Solana ecosystem are included in the charges.

Meaning of RICO Law Allegations

The Racketeer Influenced and Corrupt Organizations Act (RICO) is one of the strictest federal laws in the United States, originally designed to combat organized crime. Its core features:

Using RICO to charge participants in the crypto industry indicates that the prosecution believes there is systemic, organized illegal conduct rather than isolated violations.

Case Background and Impact Analysis

PumpFun’s Controversial History

PumpFun is a token issuance platform on the Solana chain, which has sparked controversy in the crypto community due to its low-threshold token creation mechanism. Major issues include:

• Becoming a hotbed for scams and rug pulls
• Lack of sufficient risk disclosure mechanisms
• Platform charges fees but does not review project quality

The recent RICO violation allegation may relate to the platform’s tolerance or facilitation of illegal activities.

Why Solana Foundation is Also Involved

Solana Foundation and Solana Labs, as core entities of the Solana ecosystem, are listed as defendants, implying that the prosecution may believe:

• Solana Foundation has supported or promoted PumpFun to some extent
• Solana Labs, as the technical provider, is aware of the platform’s illegal activities but has not taken action
• There may be some degree of vested interest or collusion

This poses a direct threat to the reputation of the Solana ecosystem.

Market and Ecosystem Impact Assessment

Short-term impacts

• Solana ecosystem projects may face stricter scrutiny
• Investors’ risk assessments of Solana-related projects will increase
• Regulatory agencies may intensify monitoring of on-chain activities on Solana

Long-term impacts

• If the lawsuit is successful, it could accelerate regulatory tightening on the U.S. crypto industry
• The business models of token issuance platforms may be re-evaluated
• Platforms similar to PumpFun could face shutdowns or major restructuring pressures

Personal opinion

From a legal perspective, the filing of a RICO charge indicates that the prosecution has substantial evidence. While winning the case is not guaranteed, such lawsuits often trigger chain reactions — regulators, exchanges, and investors will reassess the compliance of involved parties.

Follow-up issues to watch

• Whether the court accepts this amended complaint
• The specific responses from Solana Foundation and Solana Labs
• Whether additional parties will be added as defendants
• Whether the U.S. Department of Justice will intervene and investigate

Summary

The key point of this lawsuit is the broad scope of involved parties — extending from token issuance platforms to core infrastructure providers within the Solana ecosystem. The severity of RICO allegations far exceeds typical civil disputes; if proven, it will have profound impacts on the future operations of the entire Solana ecosystem and token issuance platforms. For investors and project teams, this is an important risk signal that warrants close attention to case developments.