Pump.fun original developer embezzles $2 million worth of SOL and receives a 6-year prison sentence in the UK

Jared Dunn, the former developer of the cryptocurrency trading platform “Pump.fun,” has been sentenced to six years in prison by a UK court for unlawfully transferring Solana assets worth approximately $2 million. This incident has once again highlighted the severity of internal crimes within the cryptocurrency industry and is seen as a warning signal to the entire sector.

Conviction for Abuse of Power and Fraud

On December 18, the UK court convicted Dunn of abuse of power and fraud. According to prosecutors, Dunn abused his access rights within the platform during his tenure and illegally transferred Solana assets worth around $2 million from Pump.fun. This act was not merely theft but was recognized as an organized fraud involving the abuse of trust and authority as a developer.

Embezzlement of Assets Worth $2 Million and Background of the Crime

Dunn’s crime involved exploiting his position with management authority over the platform. The scale of $2 million is beyond what could be considered a personal retirement fund or salary, indicating planned and organized embezzlement. Investigations revealed multiple transfers of assets, demonstrating that this was not a one-time mistake but a continuous criminal activity.

Among internal fraud cases in the cryptocurrency industry, this is a serious breach of trust at the developer level. In DeFi platforms like Pump.fun, developers have access rights to the entire system, and the abuse of such authority can cause immeasurable damage.

Impact on the Cryptocurrency Industry and Future Challenges

This ruling underscores the importance of internal controls and compliance within cryptocurrency platforms. The illegal outflow of $2 million worth of SOL may also undermine user trust in the platform.

As an industry-wide measure, the following actions are urgently needed: First, strengthening audit systems for high-privilege holders such as developers. Second, implementing multi-party approval processes for internal asset transfers. Third, utilizing blockchain technology to enhance transaction transparency.

This incident is not limited to Pump.fun but should be regarded as a structural warning for the entire cryptocurrency industry. The lesson from the $2 million loss demonstrates how crucial it is to balance internal controls and security in future platform operations.