Lookonchain reported that Pump.fun moved hundreds of millions in stablecoin through Kraken and into Circle-linked wallets and conducted large token sales over months. Co-founder Sapijiju called the allegations “complete misinformation,” saying the flagged transfers were internal treasury management—redistributing ICO-raised stablecoin across wallets to fund operations and reinvestment—and denied direct dealings with Circle or involvement in Kraken-tied transactions. Observers noted tension between the denial of exchange involvement and the treasury explanation; critics warned of potential selling pressure and demanded proof that stablecoin reserves back circulating supply. Background: Pump.fun’s ICO raised significant funds quickly, Gate.io canceled a pre-market listing and refunded presale participants, and the Solana-based launchpad previously paused and tightened livestream moderation after abuses.

Lookonchain alleged large stablecoin deposits to Kraken, transfers to Circle-linked wallets, and multi-month token sales (concrete on-chain claims); the co-founder denied the cashout and said transfers were internal treasury redistribution and denied dealings with Circle/Kraken. These competing factual claims create market uncertainty and potential selling-pressure risk, which is relevant to short-term traders.