Pump.fun’s co-founder has publicly denied allegations that the memecoin platform cashed out over $436 million in stablecoins, insisting the transactions were routine internal transfers.
Quick Summary -TLDR:
- Pump.fun is accused of moving $436 million USDC to Kraken, sparking cash-out fears.
- Co-founder Sapijiju called it “complete misinformation” and said no funds were sold.
- The USDC originated from Pump’s ICO and was redistributed internally.
- On-chain data shows Pump.fun still holds over $855 million in stablecoins.
What Happened?
A controversy erupted when Lookonchain reported that wallets linked to Pump.fun transferred $436.5 million in USDC to the Kraken crypto exchange. The report suggested a large-scale cash-out. Pump.fun’s co-founder, known pseudonymously as Sapijiju, rejected the claim, stating the transfers were routine treasury operations involving funds from the platform’s initial coin offering (ICO).
complete misinformation from @lookonchain again. $0 have been cashed out – we’re not involved in the transactions between Kraken and Circle that you’re alleging us to be a part of.
— Sapijiju (@sapijiju) November 24, 2025
What’s happening is a part of pump’s treasury management, where USDC from the $PUMP ICO has been… https://t.co/qd6GUnIxKH
The $436 Million Transfer Controversy
Blockchain analytics platform Lookonchain triggered the debate by flagging the movement of $436.5 million in USDC through Kraken. According to their data, the transfers began around October 15 and were interpreted by many as signs of a cash-out.
Sapijiju responded on X (formerly Twitter), calling the claims “complete misinformation.” He clarified that “$0 has been cashed out” and emphasized that the transferred USDC came from the PUMP token’s ICO. The funds were redistributed to internal wallets for treasury management and to support ongoing business operations.
He wrote:
He also stated that Pump.fun has never directly worked with Circle, the issuer of USDC.
The Numbers Behind the Claims
Data from DefiLlama, Arkham, and Lookonchain indicate that the Pump.fun-tagged wallets still hold:
- Over $855 million in stablecoins.
- Roughly $211 million in Solana (SOL).
Lookonchain also reported additional transfers:
- $757 million in SOL sold between May 2024 and August 2025.
- 3.93 million SOL, valued at $715.5 million, allegedly deposited into Kraken.
- 264,373 SOL sold on-chain for approximately $41.64 million.
Despite these figures, Pump.fun’s monthly revenue dropped to $27.3 million in November, the lowest since July, raising more questions within the crypto community.
Community Reactions and Analyst Opinions
The crypto community and analysts remain deeply divided over the situation.
- Nicolai Søndergaard, an analyst at Nansen, interpreted the wallet activity as potential preparation for more selling.
- EmberCN, a blockchain researcher, countered that the funds came from institutional private placements rather than active selling.
Some users appreciated the transparency and engagement from Sapijiju, while others found his statements confusing and contradictory. Notably, he denied involvement in the transfers while simultaneously stating they were part of treasury management. This contradiction did not sit well with skeptics.
Ongoing Concerns Around ICO and Transparency
The PUMP token’s ICO back in July 2025 was also controversial:
- Pump.fun raised $500 million in just 12 minutes.
- Only 12.5% of the total supply was sold to the public.
- 18% was allocated to institutional buyers, sparking fairness concerns.
Further fueling skepticism, crypto exchange Gate.io canceled its pre-market listing of PUMP just days before the ICO and refunded all presale participants. Gate.io later said the decision came after discussions with the Pump.fun team.
Pump.fun also faced backlash last year after its livestream feature was exploited, prompting a temporary suspension. The team later beefed up moderation efforts, both automated and human, to tackle the misuse.
SQ Magazine’s Takeaway
If you’ve been watching Pump.fun and wondering if they really dumped hundreds of millions in stablecoins, the answer seems more complicated than it looks. Treasury management isn’t the same as cashing out, but when that kind of money moves through Kraken, it’s natural for people to get suspicious. I appreciate the co-founder stepping up to explain, but the mixed messaging doesn’t help their case. Transparency is key in crypto, and right now, Pump.fun needs to do a better job proving that their reserves are solid and that they’re not just shuffling funds to hide deeper problems. This is a wake-up call for all Web3 projects to be more upfront.
