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Lookonchain flagged the movement of $436.5 million USDC through Kraken, but Pump.fun’s co-founder said it’s a simple treasury reshuffling from the PUMP ICO.
Pseudonymous Pump.fun co-founder Sapijiju has rejected allegations that the platform cashed out $436.5 million USDC, in a response directly to claims made by on-chain analytics account Lookonchain.
In a post, Sapijiju called the allegation “complete misinformation,” while stating that “$0 has been cashed out.” The exec denied any involvement in the transactions Lookonchain linked to crypto exchange Kraken and stablecoin issuer Circle.
USDC Transfers Spark Drama
According to Sapijiju, the movements flagged in the earlier tweet were related to Pump.fun’s internal treasury management, specifically the redistribution of USDC raised from the PUMP token ICO into different wallets so the company’s runway can be reinvested into the business.
They further added that Pump.fun has never directly worked with Circle. The original claims by Lookonchain stated that since October 15, Pump.fun had deposited 436.5 million USDC into Kraken, while 537.6 million USDC reportedly moved from Kraken to Circle through a wallet identified as DTQK7G during the same period.
Additionally, Lookonchain reported that between May 19, 2024, and August 12, 2025, Pump.fun had sold 4.19 million SOL worth $757 million at an average price of $181, with 264,373 SOL allegedly 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 treasury management from the PUMP ICO. Others were relieved to see that the team is still active and engaging with the community.
Many noted that treasury management is often mistaken for cash-outs. But critics still questioned the team’s strategy, and even called their airdrop explanation weak and warned that PUMP could collapse. Some urged proof that the USDC reserves fully back the circulating supply.
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Controversies
Pump.fun’s ICO in July for the native PUMP token was also controversial. The Solana-based meme coin launchpad raised $500 million in just 12 minutes, after selling 12.5% of the total supply at $0.004 per token in a public offering. Initially, 33% of PUMP was allocated for 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 presale participants. The exchange later explained that the decision was made following discussions with the Pump.fun team.
Last year, the platform temporarily paused its livestream feature after it was exploited for disturbing acts, including threats of self-harm and violence linked to token performance. Rapid growth, with livestream activity increasing over 100 times in a week, overwhelmed moderation systems.
To address this, Pump.fun expanded its moderation team and improved automated and human oversight.
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