#CryptoMarketMildlyRebounds

The Solana ecosystem is in a very difficult situation right now, and it will be hard for it to recover within the next six months. (As we speak, Solana is at $125.)

In January this year (2025), a major lawsuit was filed against a large meme-token production platform on the Solana network, the company BATON Cooperation Ltd (popularly known as Pump Dot Fun), which is headquartered in the UK, England.

The lawsuit includes Solana Labs, the Solana Foundation, Solana’s CEO Anatoly Yakovenko, the President of the Solana Foundation Lily Liu, and other major ecosystem figures such as Raj Gokal.

The case was filed at the Southern District Court in New York City, USA, on allegations of conspiracy, operating a criminal enterprise, and committing fraud without complying with U.S. Securities Laws.

The plaintiffs presented the following claims:

Pump Dot Fun was launched in January 2024. From January 2024 to March 2025, about 7 million tokens or meme coins were created. Out of these, 98.6% collapsed and fell to zero value, while only 1.4% managed to survive as functional utility tokens.

Additionally, the plaintiffs stated that Pump Dot Fun takes a 1% fee from every transaction made on tokens created on its platform. This allegedly earned them about $850 million within 14 months of launching Pump Dot Fun.

They are accused of criminal coordination and operating a criminal enterprise, as well as creating the Pumpfun system, which allegedly forcefully takes people’s money through manipulation, deception, and false promises.

The plaintiffs submitted about 5,800 messages to the court, provided by informants, detailing various abuses allegedly happening within the Solana network.

The main thing currently sustaining Solana is meme tokens, yet efforts are now being made to dismantle the biggest meme-coin platform (Pump Dot Fun).

So far, Pumpfun has sold Solana worth $1 billion from the start of this case until now. If Pumpfun can sell $1 billion worth of Solana within just three months, then it is clear they are afraid of something serious happening.

This is not a small case against Solana. It is one of the reasons many big investors withdrew their funds, and many others have refused to return, choosing instead to wait and see how things turn out. If Solana fails to defend itself, it could be forced to pay fines of up to $16 billion (about ₦23.7 trillion in Nigerian currency).

There is also the possibility that the entire team could face prison sentences of up to 14 years, or at least 6 years. Furthermore, Pump Dot Fun is accused of rushing the launch of the PUMP token in order to extract more funds before the case becomes more serious in court.

There is also a separate case against the three young founders of Pump Dot Fun:

The CEO of Pump Dot Fun is Noah Bernhard Hugo Tweedale, aged 21.

The CTO is Dylan Kerler, also 21 years old.

The COO, responsible for operations and coordination, is Alon Cohen, aged 23.

At a court session held this week, the plaintiffs requested permission to add more parties to the case and submit additional evidence. On December 16, 2025, the court approved this request and gave them three days, up to December 23 (today).

Solana, on the other hand, was given one month, until January 23, 2026, to submit its defense and responses to the allegations.

This court case has created an opportunity for Binance to act in its own interest, as many people are trying to distance themselves from Solana because of the ongoing lawsuit.

The court hearing scheduled for the 28th of this month could be one of the dates when sanctions against Solana may begin. Solana could potentially fall to around $70 or something close to that—below $70.

We saw how legal issues pushed CORE down before its case was even concluded. Now, with Solana, unless divine protection intervenes, it could drop to around $70 or even $45 in the future before the case is fully resolved.