Solana memecoin platform Pump.fun reportedly laid off more than 40 employees shortly before their PUMP token grants were due to vest, potentially costing some workers life-changing payouts while the company generated more than $1.3 billion in lifetime revenue.

According to a report by crypto outlet Sandmark, the company dismissed employees in two rounds spanning late March, early April and mid-July, with some workers claiming they were terminated just days before their token allocations were scheduled to begin unlocking.

Employees claim layoffs erased seven-figure token compensation

Sandmark, citing internal documents, emails and recordings of company meetings, reported that Pump.fun employees signed token grant agreements in June 2025 that entitled them to receive PUMP tokens under a vesting schedule. The first 25% of those allocations was reportedly due to unlock in June 2026.

Because the reported agreements required employees to remain with the company until the vesting date, staff who were terminated beforehand allegedly forfeited their entire unvested allocation.

One former employee reportedly lost tokens worth more than $1 million at current market prices after being dismissed before the first vesting milestone.

During a recorded March meeting obtained by Sandmark, co-founder Noah Tweedale allegedly told employees the layoffs were necessary because Pump.fun had "grown too quickly" and could no longer operate "fast and rough." Employees reportedly received one week of severance pay for every month worked.

An X account claiming to represent former Pump.fun employees later alleged that more than 40 staff members had been laid off across two waves, with several losing token allocations that were on the verge of vesting. Sandmark said it could not independently verify every claim made by former employees.

Pump.fun and co-founders Noah Tweedale and Alon Cohen did not respond to requests for comment, according to the report.

Billion-dollar platform faces fresh governance scrutiny

The allegations arrive as Pump.fun remains one of crypto's highest-revenue projects. Sandmark estimates the memecoin launchpad has generated roughly $1.3 billion in lifetime revenue and continues to bring in approximately $1 million in daily fees after helping users create more than 20 million tokens.

The report also highlighted governance concerns surrounding Pump.fun's UK parent company, Baton Corporation Ltd., whose financial statements for the period ending Sept. 30, 2025, remain overdue with Companies House. Although any late-filing penalties would be insignificant relative to the company's reported revenue, the missed deadline adds to questions surrounding the firm's corporate compliance and transparency.

Pump.fun has already faced increasing regulatory and legal scrutiny in the UK. The platform has blocked UK users since late 2024 after appearing on the Financial Conduct Authority's warning list, while also facing multiple legal disputes related to its business practices.

If confirmed, the reported layoffs would add another layer of controversy for one of crypto's fastest-growing companies, raising fresh questions over employee compensation practices as former staff accuse the firm of terminating workers shortly before they became entitled to valuable token payouts.