Former lead developer of the crypto platform pump.fun, Jarrett Dunn, has officially pleaded guilty in the case of stealing Solana (SOL) tokens worth approximately $2 million. He is currently in custody in London for violating the terms of his bail and has signed the relevant plea agreement.
This is reported by Business • Media
The Court Considers the Case a Serious Crime
The case may conclude with a verdict within two weeks. During the initial hearing, the judge noted that the actions are likely to be classified as a Class 1A crime, which carries a potential sentence of up to seven years in prison. Previously, Dunn attempted to retract his confession but has now returned to his original position and is awaiting a final decision.
According to court data, the direct losses for pump.fun amount to about $2 million; however, the total losses, including reputational risks, costs for restoring platform operations after a nine-hour downtime, and reduced fees, could reach $10 million.
“According to the court, the direct loss was approximately $2 million, but the indirect losses for pump.fun could amount to $10 million. This figure includes costs for maintaining reputation, losses due to the nine-hour platform downtime, and temporary fee reductions.”
Some of the stolen tokens were transferred to random addresses, making the recovery of funds impossible.
Case Circumstances and Further Developments
Dunn’s defense focuses on the mental state of the defendant. The lawyers argue that the developer suffers from schizoaffective bipolar disorder, panic disorder, and attention deficit hyperactivity disorder, as well as struggles with addictions. Medical documents confirm that he was not taking prescribed medications at the time of the crime.
Despite the incident, the pump.fun platform has significantly increased its financial performance over the past year: revenue grew from $43.9 million to $791 million. Additionally, the company launched its own token, PUMP, which currently has a market capitalization of $1.31 billion.
The prosecution may seek restitution for the damages under the British Proceeds of Crime Act (POCA). The final decision regarding sentencing will take into account Dunn’s mental state and the impact of the attack on the platform’s operations.