Baton Corporation (PNUT Token) Unregistered Securities and Meme Token Fraud Case

The defendant has requested the court to dismiss the case.

S.D. New York

Court

1:25-cv-00880

Case number

10/31/2024

Class period Start

12/31/2024

Class period End

04/02/2025

Lead Plaintiff motion deadline

Investors filed a lawsuit against Baton Corporation for promoting the PNUT Token as an unregistered security through misleading marketing and a manipulative trading infrastructure.
After the project collapsed and investors were left with worthless tokens, the complaint alleged over $500 million in platform-wide investor losses.
PNUT investors can join this case to stay updated on potential recovery.
Case Details:

On October 31, 2024, Baton Corporation, operating as Pump.Fun, launched the PNUT Token (Peanut the Squirrel) through its memecoin platform. The token was promoted using flashy marketing—images of Lamborghinis, rockets, and promises of rapid wealth—to attract investors seeking explosive returns. In just 11 days, PNUT reportedly hit a $1 billion market cap.

However, the platform was never registered with the SEC, and the PNUT Token was sold as an investment with no underlying utility, fitting the definition of a security. Pump.Fun structured its entire platform to create and promote thousands of similar tokens, using uniform pricing models, bonding curves, and marketing that encouraged speculative trading.

Tokens like PNUT were sold to retail users—many of them minors—without disclosures, KYC, or AML safeguards. Internal documentation revealed that the entire PNUT campaign was centrally managed with Pump.Fun handling marketing, listings, and economics while giving the false appearance of creator independence.

By early 2025, the platform had enabled the launch of thousands of nearly worthless tokens, extracted millions in transaction fees.

Based on these events, investors filed a lawsuit against Baton Corporation, claiming the company:
It sold the PNUT Token as an unregistered security in violation of federal law.
It misled investors with profit-focused marketing while failing to disclose platform-wide risks.
It operated a token-launching system designed to mimic legitimate crypto while enabling pump-and-dump behavior.
Investors believe Baton Corporation used its Pump.Fun platform to offload unregistered securities to retail traders.

Case Type

US Securities Class Action

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Crypto Asset

Trade Direction

Long

Shock Event Date

10/31/2024

Filing date

01/16/2025

Lead Plaintiff Deadline

04/02/2025

Judge

Colleen McMahon

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