Pump.fun co-founder denies cashing out ICO funds, calling allegations ‘misinformation’

Lookonchain flagged the move of $436.5 million USDC via Kraken, but the Pump.fun co-founder said it’s a simple reshuffling of the PUMP ICO’s treasury.

Pump.fun’s pseudonymous co-founder Sapijiju has dismissed allegations that the platform paid out $436.5 million USDC, in a direct response to claims made by on-chain analytics account Lookonchain.

In a post, Sapijiju called the accusation “complete misinformation,” while stating that “$0 has been paid out.” The director denied any involvement in the transactions that linked Lookonchain to crypto exchange Kraken and stablecoin publisher Circle.

USDC transfers cause drama

According to Sapijiju, the moves highlighted in the earlier tweet were related to Pump.fun’s internal treasury management, specifically the redistribution of USDC raised from the PUMP token ICO to various wallets so that the company’s runway can be reinvested into the business.

She continues added that Pump.fun has never worked directly with Circle. Lookonchain’s original claims declared that Pump.fun had deposited 436.5 million USDC into Kraken since October 15, while 537.6 million USDC was reportedly moved from Kraken to Circle during the same period via a wallet identified as DTQK7G.

Additionally, Lookonchain reported that Pump.fun sold 4.19 million SOL worth $757 million at an average price of $181 between May 19, 2024 and August 12, 2025, with 264,373 SOL reportedly dumped on-chain for $41.64 million, and 3.93 million SOL worth $715.5 million deposited into Kraken.

Sapijiju’s clarification received mixed reactions. Some pointed out a contradiction: the team denied involvement in Kraken and Circle transactions, but admitted that USDC moves were part of the PUMP ICO’s treasury management. Others were relieved to see that the team is still active and involved in the community.

Many noted that treasury management is often mistaken for disbursements. But critics still questioned the team’s strategy, even calling their airdrop statement weak and warning that PUMP could collapse. Some pushed for evidence that USDC reserves fully support circulating supply.

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Controversies

Pump.fun’s July ICO for the native PUMP token was also controversial. The Solana-based meme coin launch platform has raised $500 million in just 12 minutes, after selling 12.5% ​​of its total supply at $0.004 per token in a public offering. Initially, 33% of PUMP was allocated to 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, crypto exchange Gate.io suddenly canceled PUMP’s pre-market listing and refunded all pre-sale participants. The exchange later explained that the decision was made after discussions with the Pump.fun team.

Last year, the platform temporarily suspended the livestream feature after it was exploited for disturbing acts, including threats of self-harm and violence related to symbolic performance. The rapid growth, with livestream activity increasing more than 100 times per week, overwhelmed moderation systems.

To address this, Pump.fun has expanded its moderation team and improved automated and human moderation.