Solana-based memecoin platform Pump.fun is facing allegations that it dismissed employees shortly before they were scheduled to receive PUMP token grants worth millions of dollars under their compensation agreements. The claims stem from an investigation by Sandmark and have not been publicly addressed by the company.
According to the report, Pump.fun carried out layoffs in late March and early April 2026, only weeks before the first portion of employee token grants was due to vest under agreements signed in June 2025. Those agreements reportedly provided for 25% of each employee’s token allocation to vest after one year, meaning affected workers lost access to unvested tokens when their employment ended. At least one former employee is said to have forfeited a seven-figure PUMP allocation as a result.
The investigation also cites internal emails, documents, and recordings in which co-founder Noah Tweedale reportedly told staff that the company had expanded too quickly and needed to reduce headcount. Employees who were laid off allegedly received severance packages based on their tenure, but their unvested token awards were canceled under the terms of their agreements.
Separately, former employees have alleged that a second round of layoffs took place in mid-July, with roughly 40 workers reportedly dismissed just one day before another scheduled PUMP token vesting event. Those claims have not been independently verified, and Pump.fun has not publicly commented on either the alleged layoffs or the token vesting allegations.
The controversy comes as Pump.fun remains one of the crypto industry’s largest revenue generators. The Solana-based launchpad has reportedly generated roughly $1.3 billion in cumulative revenue since launching and became one of the fastest-growing platforms in the memecoin ecosystem.
If the allegations are confirmed, the episode could raise broader questions about the use of token-based compensation at private crypto companies. Vesting schedules are designed to reward long-term employees, but they can also leave workers vulnerable if employment ends shortly before tokens become transferable. The case may increase scrutiny of how crypto firms structure equity- and token-based incentives as competition for engineering talent intensifies.
