Pump.fun Co-Founder Denies Fund Transfer Allegations
The co-founder of Pump.fun, known by the pseudonym Sapijiju, has responded to claims that the platform transferred a staggering $436.5 million in USDC to the Kraken exchange since mid-October. Furthermore, there are allegations of an additional $537.6 million being moved from Kraken to Circle for redemption purposes. The blockchain analytics platform Lookonchain brought attention to these transactions, estimating that Pump.fun sold around 4.19 million SOL tokens, valued at approximately $757 million, between May 2024 and August 2025 at an average price of $181. In his defense, Sapijiju labeled these claims as “complete misinformation,” asserting that the project was not implicated in any transactions between Kraken and Circle. He explained on social media that the actions taken were part of Pump’s treasury management strategy, where USDC from the initial coin offering (ICO) of PUMP was shifted to various wallets for reinvestment purposes. The platform further clarified that these funds originated from institutional private placements carried out in June, during which institutions acquired PUMP tokens at the price of $0.004 each. Despite the unfolding controversy, data from DefiLlama indicates that wallets associated with Pump.fun still retain over $855 million in stablecoins and $211 million in SOL.
Revenue Drop Sparks Speculation
The timing of these fund transfers aligns with a significant drop in Pump.fun’s monthly revenue. In November, the platform reported earnings of $27.3 million, a 53% decrease from September’s $58.9 million, marking the first time since July that monthly revenue fell below $40 million. Reactions from the community regarding Sapijiju’s comments have been mixed. Some critics highlighted apparent inconsistencies in his narrative, with one user pointing out the contradiction of denying involvement in transactions with Kraken while simultaneously describing the situation as “treasury management” for ICO funds. Others accused the team of engaging in “price manipulation via airdrops” and mismanagement, which they believe contributed to PUMP’s decline below its initial offering price. As of now, PUMP is trading at $0.0027, a 32% drop from its ICO price of $0.004 and over 70% lower than its peaks in September. Nevertheless, some community members defended the platform’s discretion in managing ICO proceeds, with one user, Matty.Sol, arguing that such treasury movements are typical after token sales.
Gnosis DAO Ends Partnership with KPK
In an unrelated development, Gnosis DAO has voted to terminate its partnership with treasury manager KPK, formerly known as Karpatkey, with 88% of members supporting the decision. The organization, which oversees various projects including Safe, CoW Swap, Gnosis Chain, and Gnosis Pay, cited “extensive community discussions” regarding KPK’s performance, costs, and alignment with the DAO’s goals. According to data from DeFiLlama, GnosisDAO’s treasury holds over $175 million in assets. Concerns were raised among community members about KPK’s fee structure, which includes a 1% charge on assets under management and 20% of the generated yield, established in a 2022 proposal (GIP-58). Additionally, users noted losses amounting to $700,000 due to a misconfigured Balancer liquidity pool, along with complaints about communication issues and unsatisfactory returns. KPK acknowledged the communication shortcomings but emphasized its efforts to reduce operating costs from $6.3 million in 2024 to $2.2 million in 2025, while also implementing a $2 million fee cap. The firm pointed out that ambiguities in the initial engagement led to expanded responsibilities that exceeded its primary mandate.
Increased Scrutiny of the Industry
The questions surrounding KPK’s effectiveness have not been limited to Gnosis. Discussions within Ethereum Name Service forums have revealed that total returns were insufficient to outpace inflation, with users identifying inaccuracies in the company’s yield calculations. These controversies highlight the challenges faced in the DAO treasury management sector, where organizations are increasingly scrutinizing whether service providers are delivering value that justifies their fees. Some community members have criticized KPK’s emphasis on communication issues, bluntly stating that the core problem lies in performance. These developments come amid broader governance challenges, as evidenced by Layer-2 solution Scroll’s DAO pausing operations in September following its leader’s resignation, pointing to the complex landscape that decentralized organizations must navigate.
