Pump.fun Denies $436M Cash-Out Allegations as ‘Misinformation’

The controversy erupted when on-chain analytics account Lookonchain reported that since October 15, Pump.fun had deposited 436.5 million USDC into cryptocurrency exchange Kraken, while 537.6 million USDC reportedly moved from Kraken to stablecoin issuer Circle through a wallet identified as DTQK7G during the same period. Additionally, Lookonchain reported that between May 19, 2024, and August 12, 2025, Pump.fun had sold 4.19 million SOL worth $757 million at an average price of $181, with 264,373 SOL allegedly dumped on-chain for $41.64 million, and 3.93 million SOL worth $715.5 million deposited into Kraken.

In a direct response, Pump.fun co-founder Sapijiju rejected these allegations as ‘complete misinformation’ and stated that ‘$0 has been cashed out.’ The executive denied any involvement in the transactions Lookonchain linked to Kraken and Circle, emphasizing that Pump.fun has never directly worked with Circle. According to Sapijiju, the movements were related to Pump.fun’s internal treasury management, specifically the redistribution of USDC raised from the PUMP token ICO into different wallets so the company’s runway could be reinvested into the business.

Sapijiju’s clarification received mixed reactions from the crypto community. Some observers pointed out a apparent contradiction: while the Pump.fun team denied involvement in Kraken and Circle transactions, they simultaneously admitted that USDC movements were part of treasury management from the PUMP ICO. This nuance sparked debate about whether treasury management operations could be reasonably distinguished from cash-outs in practice.

Other community members expressed relief that the Pump.fun team remained active and engaged with the community amid the allegations. Many noted that treasury management is often mistaken for cash-outs in the crypto space, where large transactions automatically attract scrutiny. However, critics continued to question the team’s strategy and transparency, with some calling their airdrop explanation weak and warning that the PUMP token could face collapse if confidence erodes further. Several commentators urged the platform to provide proof that USDC reserves fully back the circulating supply to restore trust.

This is not the first controversy surrounding Pump.fun. The platform’s ICO in July for the native PUMP token itself drew significant attention and criticism. The Solana-based meme coin launchpad raised $500 million in just 12 minutes, after selling 12.5% of the total supply at $0.004 per token in a public offering. Initially, 33% of PUMP was allocated for the ICO, with 18% reserved for institutional buyers and 15% for the public sale, but only 12.5% was actually sold publicly.

Just days before the ICO, cryptocurrency exchange Gate.io suddenly canceled PUMP’s pre-market listing and refunded all presale participants. The exchange later explained that the decision was made following discussions with the Pump.fun team, though specific reasons were not disclosed. This last-minute cancellation raised questions about the token’s viability and the platform’s relationships with major exchanges.

Last year, the platform faced different challenges when it temporarily paused its livestream feature after it was exploited for disturbing acts, including threats of self-harm and violence linked to token performance. The platform’s rapid growth saw livestream activity increase over 100 times in a single week, overwhelming moderation systems. In response, Pump.fun expanded its moderation team and improved both automated and human oversight to address these issues.