TLDR
X suspended Pump.fun, Alon Cohen, and others on June 16 for rule violations, no official reason given.
Affected memecoin accounts include GMGN, BullX, Bloom Trading, and ElizaOS—now appealing bans.
Pump.fun faces a $500M lawsuit and was planning a $1B raise at a $4B valuation, per reports.
Despite bans, Pump.fun remains live; over $2.9M paid to creators via new revenue-share model.
On June 16, social media platform X suspended several accounts tied to the memecoin industry, including the popular Solana-based launchpad Pump.fun and its co-founder Alon Cohen. These removals occurred without an official explanation, causing speculation about potential rule violations or regulatory concerns.
Multiple Crypto-Linked Accounts Taken Down
The suspensions affected a wide range of accounts. Pump.fun’s main handle, “pumpdotfun,” and Cohen’s personal account, “a1lon9,” were among the first to be removed. Soon after, accounts belonging to GMGN, BullX, Bloom Trading, and the AI tool ElizaOS were also taken down.
These accounts now display a standard message from X stating they have been suspended for violating platform rules. The company has not shared specific reasons for the actions. The Block and other media outlets have reported that requests for comment from both X and the affected platforms remain unanswered.
Speculation Around Possible Causes
The absence of clear communication has led to various online theories about why the suspensions happened. Some users on X suggested that the platforms may have been using unauthorized APIs to gather data from the site without subscribing to X’s developer tools. Others referenced a widely shared, but unverified, post claiming that the U.S. Securities and Exchange Commission is investigating Pump.fun.
However, no official notice of investigation has been issued by the SEC. No evidence has emerged to confirm a regulatory connection to the suspensions. Still, concerns are growing among users and developers about increased pressure on memecoin platforms.
These suspensions follow months of controversy surrounding the Solana-based memecoin space. Several users have complained that platforms like Pump.fun have enabled scams and pump-and-dump schemes. The rise in unsafe content during live promotional streams also drew criticism.
Past Incidents and Legal Questions
In January, Pump.fun was named in a class-action lawsuit. The case alleges that the platform offered and sold unregistered securities, leading to nearly $500 million in collected fees. The platform has denied wrongdoing, and the case remains pending.
Earlier in June, reports surfaced that Pump.fun was preparing to raise $1 billion through a token sale at a $4 billion valuation. The company has not released full details of that plan, and no official filing has been made.
In May, the platform disabled live streaming following several dangerous stunts during coin promotions. One incident involved a fake suicide attempt staged by a developer seeking to promote their token.
Operations Continue as Scrutiny Rises
Despite the account suspensions, Pump.fun’s main website continues to function. It is still being used to launch and trade new memecoins on the Solana blockchain. According to Dune Analytics data, the platform recently introduced a revenue-sharing model. This system pays creators 50% of the fees generated by the tokens they launch.
A creator on the site reportedly earned over $93,000 in three weeks under the new model. Over $2.9 million has been paid out to creators during that period.
No timeline has been shared for when or if the suspended X accounts will be reinstated. Meanwhile, the situation has led to rising attention around memecoin platforms and the way they operate.
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