Ex-Pump.fun Dev Faces Prison Over $2 Million Crypto Theft​

2025-07-19

Ex-Pump.fun Dev Faces Prison Over $2 Million Crypto Theft

  • Ex-Pump.fun dev Jarett Dunn stole $2M, triggering fraud charges and jail time.
  • Pump.fun thrives with $600M ICO and PUMP token, despite an insider breach scandal.
  • Dunn’s theft exposes major gaps in smart contract access and internal controls.

Pump.fun’s former senior developer, Jarett Dunn, was jailed in London for violating bail. Dunn, who admitted to stealing $2 million from the platform, now faces a possible 7-year sentence. His case sheds light on internal vulnerabilities within the booming memecoin sector.

Internal Theft Exposes Security Risks at Pump.fun

Pump.fun hired Dunn in 2023 as a senior developer, but his employment lasted just six weeks before the breach occurred. During that period, Dunn exploited internal access to transfer roughly $2 million to unidentified crypto wallets. His actions sparked legal proceedings that continue to unfold. 

Authorities charged Dunn with fraud and criminal property transfer, offenses he initially pleaded guilty to in court. However, he later attempted to reverse his plea during a scheduled sentencing hearing in October. This surprise move led his legal team to withdraw from the case entirely.

Since that development, Dunn remained in London on bail while awaiting a court decision on his plea reversal. He violated those bail terms in June by relocating to Liverpool, triggering immediate remand. Officials held him first at Walton Prison and then moved him to HMP Pentonville in London by July.

Bail Breach Leads to Jail as Platform Surges

Pump.fun has emerged as a major player in the memecoin space during Dunn’s legal troubles. The platform completed a $600 million ICO this month and launched its PUMP token. PUMP has since entered the top 70 global cryptocurrencies by market capitalization. While Dunn sits in prison, Pump.fun reported over $770 million in revenue since its launch 17 months ago. At the press time, PUMP token was trading at $0.0046, a 13.4 % drop in the last 24 hours, according to CoinMarketCap.

Pump.fun is expanding operations including acquisitions like Kolscan, to support the broader Solana memecoin ecosystem. This development raises governance questions, especially about treasury control, smart contract access, and insider oversight.

Related: Memecoin Platform Pump.fun Raises $600 million in 12 Minutes

Dunn’s Crime Raises Alarm Over Smart Contract Access

The internal attack by Dunn has become a cautionary tale for other high-growth crypto platforms. As the theft illustrated, access control can be easily exploited by a privileged insider. Developers can misdirect funds, undermine the integrity of projects, and elicit regulatory action without any form of restriction.

High-growth platforms will be required to integrate robust internal frameworks to track wallet access, role, and treasury management. Given that Pump.fun trades millions daily, the story behind it is now associated with a word of caution. The case of Dunn will probably shape future compliance plans in the crypto launchpad industry.

The post Ex-Pump.fun Dev Faces Prison Over $2 Million Crypto Theft appeared first on Cryptotale.

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