SUBJECT
On Solana blockchain in context of Pump.fun memecoin launches; allegations centered on Jito Labs infrastructure and alleged coordination with Pump.fun / Solana entities
MEV TECHNICAL EXPLANATION (NEUTRAL DEFINITION)
Additional profit block producers (validators) or third parties can capture by reordering, including, or excluding transactions within a block beyond standard block rewards and fees.
MEV on Solana
- High-throughput architecture enables rapid transaction processing
- MEV manifests via transaction ordering advantages in mempool/leader schedule
Jito Labs Role
Provides validator client (Jito-Solana) with bundle auction system:
- Searchers submit atomic bundles (up to 5 transactions) with tips (priority fees) to validators via off-chain auction
- Winning bundles prioritized for inclusion based on tip amount
- Reduces spam, reallocates MEV to validators/stakers via tips
- Jito retains portion (e.g., 5-6% historically reported)
- Bundles execute atomically (all-or-nothing); enables strategies like arbitrage/backrunning without partial failure risk
CONFIRMED INFRASTRUCTURE ATTRIBUTES
- Jito infrastructure widely used on Solana for MEV optimization (bundles, tips, block engine)
- Integrated in validator clients running Jito-Solana
- Pump.fun operates on Solana
- Memecoin launches involve high initial volatility and thin liquidity, making transaction ordering sensitive
LEGAL CONTEXT
MEV Claims Added
Consolidated Amended Complaint includes MEV-related allegations
Jito Labs, Inc. and Jito Foundation named as defendants
Source: [2]Jito Labs Voluntary Dismissal
Voluntary dismissal without prejudice
No settlement or admission documented
Source: [6]Court Permits New Evidence
Second Amended Complaint permitted with incorporation of new evidence
Plaintiffs reference internal communications (reported as >5,000 chat logs from whistleblower/confidential informant)
Alleged coordination among Pump.fun staff, Solana engineers, and Jito-related parties on transaction advantages
Source: [3]Whistleblower Chat Logs Reported
5,000+ secret chat logs allegedly dropped by whistleblower
Purportedly show discussions of MEV tooling integration, bundle usage, and prioritization advantages
Source: [5]ALLEGATIONS
Per plaintiffs' filings and reporting; defendants contest all claims; no liability findings as of January 31, 2026
Pump.fun secretly integrated Jito MEV tools to enable insiders/affiliates to front-run retail buys during token launches via Jito bundles and tips. Insiders allegedly paid tips for priority execution, purchasing tokens at lower prices before public orders, then selling post-price rise (risk-free arbitrage claimed).
Between Pump.fun, Solana Labs/Foundation, and Jito to exploit Solana mempool/validator infrastructure for MEV extraction
Retail losses tied to these practices estimated in billions ($4–5.5B aggregate in broader claims)
Platform marketed as "fair" launches while allegedly facilitating insider advantages through MEV mechanics
Internal chats (5,000+ leaked/referenced December 2025) purportedly show discussions of MEV tooling integration and bundle usage
PLATFORM / DEFENDANT RESPONSES (DOCUMENTED)
Pump.fun / Associated Parties
- Deny improper coordination or manipulation
- Characterize MEV as standard neutral infrastructure on Solana
- Public statements and filings contest claims
Jito Labs Position
- Argued no direct control/relationship with Pump.fun
- Provided only open infrastructure (motion to dismiss grounds)
- Voluntary plaintiff dismissal obtained
UNCORROBORATED / REDACTED ATTRIBUTES
- Full contents/authentication of alleged 5,000+ chat logs (incorporated per court order; public excerpts limited; whistleblower identity undisclosed)
- Specific evidence of Pump.fun team directly using/allocating bundles for insider trades (alleged but not independently verified in public sources)
- Quantified MEV extraction directly attributable to Pump.fun launches (estimates in filings; no on-chain forensic consensus)
- Any regulatory enforcement (SEC/DOJ) beyond private class action (none confirmed as of January 31, 2026)