tl;dr
Jarett Dunn, former senior developer at Pump.fun, admitted guilt to stealing about $2 million in Solana (SOL) from the token launchpad while jailed in London for breaching bail. Despite initially trying to withdraw his plea, he reaffirmed his guilt and awaits sentencing. Pump.fun has since recovered...
Jarett Dunn, a former senior developer at Pump.fun, has admitted guilt to charges of draining approximately $2 million worth of Solana (SOL) from the token launchpad. The admission came from jail in London after Dunn was imprisoned for breaching bail conditions. Despite a previous attempt to withdraw his guilty plea, he ultimately reaffirmed his guilt and now awaits sentencing.
Pump.fun, the platform targeted in this incident, has bounced back impressively, reclaiming dominance in the Solana token launchpad market with 77% of tokens created and generating over $2.28 million in revenue recently. The platform has grown significantly, with lifetime revenues soaring from $43.9 million during Dunn’s tenure to $791 million now, and has become a hub for meme tokens and viral trends.
Dunn’s case is severe, categorized potentially as a category 1A offense, meaning sentencing could start at seven years due to the scale of the fraud and the consequential losses to Pump.fun estimated at around $12.8 million. These losses reflect both direct theft and damage caused by halted trading and goodwill fee reductions enacted by the platform. The stolen funds were dispersed to random wallets, rendering immediate recovery impossible, though legal moves to reclaim these funds may still be pursued under UK law.
Mental health factors, including schizoaffective bipolar disorder, panic disorder, ADHD, and a history of substance abuse, may mitigate Dunn’s sentencing. At the time of the offense, Dunn was reportedly off medication, unfit for police interview, and hospitalized for mental health treatment. His struggles with mental health have been noted by the court as a potential factor influencing his actions.
Since Dunn’s departure, Pump.fun has become a prominent figure in crypto culture, launching popular meme tokens and building a community aimed at challenging major streaming platforms. Its native token has seen a 27% surge recently, though it remains below its peak valuation. Meanwhile, Dunn remains in custody, awaiting the next steps in the legal proceedings that will determine his fate.