Solana Lawsuit Alleges $3.18B Gambling Scheme: RICO Charges Expand

- Plaintiffs claim an illegal gambling operation ran via the memecoin platform Pump.fun - Solana Foundation, Solana Labs, Jito Labs, and key executives face expanded charges On July 23, 2025, The Block reported that Burwick Law and Wolf Popper filed an expanded suit in the U.S. District Court for the Southern District of New York. The suit alleges a $3.18 billion illegal gambling network operates through Solana’s blockchain ecosystem, accusing the Solana Foundation, Solana Labs, Jito Labs, and several high-profile executives of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act. The lawsuit claims they operated a gambling enterprise disguised as the memecoin platform, Pump.fun. The suit describes Pump.fun as a “Meme Coin Casino,” alleging the platform used Solana’s blockchain infrastructure and Jito Labs’ transaction tools to enable illicit gambling. Plaintiffs claim Pump.fun directly amassed $722.85 million in unlawful revenue, while the larger Solana ecosystem benefited from $3.18 billion tied to these gambling-related transactions. Plaintiffs allege Solana Labs and Jito Labs served as “architects, beneficiaries, and co-conspirators,” claiming the companies actively designed and profited from the gambling scheme instead of acting as neutral technology providers. The lawsuit also claims Pump.fun enabled money laundering by the North Korean Lazarus Group, a hacking organization linked to global cyberattacks. According to the plaintiffs, the Lazarus Group funneled millions stolen from the Bybit crypto exchange through the “QinShihuang” memecoin. This activity allegedly bypassed essential regulatory safeguards like know-your-customer (KYC) and anti-money laundering (AML) protocols. The complaint names Solana co-creators Anatoly Yakovenko and Raj Gokal, along with Jito Labs CEO Lucas Bruder, as defendants, accusing them of enabling illegal gambling, intellectual property theft, wire fraud, and operating an unlicensed money transmission service. In addition, the lawsuit charges Jito Labs with manipulating blockchain transaction orders to favor users who paid bribes for preferential treatment. Lucas Bruder and the other named individuals have not yet commented on the allegations. According to VISI.NEWS on July 23, as of 20:08 UTC, Pump.fun (PUMP) traded at $0.004, with a 4.739% increase in 24-hour trading volume. In contrast, Solana (SOL) dipped to $189.069, showing a 5.264% decline in trading volume. Meanwhile, Jito (JTO) traded at $2.012, marking a 6.485% decrease in its 24-hour volume.