Pump.fun Lays Off Staff Before Token Vesting, Sparking Controversy

Pump.fun, the Solana-based memecoin launchpad operated by Baton Corp., is facing intense scrutiny after allegations surfaced that it laid off staff members shortly before their token allocations were scheduled to vest.

According to a report by KuCoin, internal documents, emails, and recordings reviewed by investigators indicate that leadership trimmed staff after a period of rapid expansion. Staff members who signed token grant agreements in June 2025 were dismissed right before their initial one-year vesting milestones, cancelling their eligibility for token allocations worth millions of dollars.

The core controversy centres on the timing of employee dismissals relative to the platform's PUMP token unlock schedule. While affected personnel received standard severance packages based on their tenure, their unvested token grants were completely revoked under termination clauses.