Pump.fun staff reportedly lost token allocations worth millions after the Solana memecoin launchpad dismissed more than 40 employees before scheduled vesting dates.
At least one former worker missed a payout valued above $1 million, according to Sandmark.
Pump.fun Layoffs Came Before Vesting
Sandmark said the first dismissals occurred in late March and early April. Its report cited internal documents, emails, audio, and video from a meeting where co-founder Noah Tweedale said Pump.fun “had grown too quickly,” preventing it from staying “fast and rough.”
A “termination of services” email directed affected workers to meet Lloyd McCarthy, the company’s head of talent. Their agreements ended in early April, with severance equal to one week of pay for every month served. Tweedale and co-founder Alon Cohen did not answer Sandmark’s questions, while Pump.fun has not addressed the allegations.
Employees signed token grant agreements in mid-June 2025. Twenty-five percent of their PUMP allocations were due to unlock in June 2026, but workers leaving earlier lost their full grants. Sandmark valued one allocation above $1 million when its report appeared.
Using TradingView data, Sandmark placed PUMP about 79% below its 2025 peak of $0.0089. Crypto Times reported a 69 percent decline. PUMP traded near $0.002, down 26 percent over one year but almost 8 percent higher that day.
Second Pump.fun Layoff Wave Emerges
Former employees said another round occurred in mid-July. An X account called ExPumpEmployee posted “termination of services” emails on Thursday and claimed one worker was dismissed one day before token vesting.
Former staff placed combined layoffs above 40 across both waves, although Sandmark could not verify every detail. KuCoin’s news desk also said more than 40 employees were dismissed within two months.
Pump.fun reportedly expanded from three workers to nearly 100 this year. Users have created more than 20.8 million tokens through the platform. Dune analytics cited by Sandmark put lifetime revenue near $1.3 billion and daily revenue around $1 million.
Pump.fun Faces UK Regulatory Issues
Pump.fun operates through UK-incorporated Baton Corporation Ltd. It blocked UK users in December 2024 after the Financial Conduct Authority warned it might be conducting activities requiring authorization. The platform remains on the FCA warning list.
Its UK connection surfaced in 2024 when former employee Jarett Dunn transferred about $2 million from a company wallet to thousands of addresses, claiming he had “killed” the memecoin. Wood Green Crown Court sentenced Dunn to six years in prison in December 2025. Pump.fun later launched a bounty feature, while users posted suicide offers.
Baton’s accounts through September 30, 2025, were due June 30 and became delinquent, carrying a possible fine of up to £375. Pump.fun also faces lawsuits alleging a “rigged” investor offering and improper maximal extractable value practices.
