Pump.fun, one of the crypto industry's biggest revenue generators, began laying off part of its workforce in early April. According to an exclusive report by Sandmark, the cuts came about two months before the scheduled unlock of PUMP tokens allocated to staff. Former employees believe the timing of the layoffs effectively prevented them from receiving their first token payouts.
Documents reviewed by Sandmark show that employees signed PUMP token allocation agreements in June 2025. Under the agreements, the first 25% of their allocated tokens was scheduled to unlock one year later.
According to documents and an audio recording of an internal meeting obtained by Sandmark, employees were informed about the layoffs in late March, and in early April the company terminated token agreements with part of the team. During the meeting, Pump.fun co-founder Noah Tweedale said the company had expanded its workforce too quickly and, as a result, lost the agility it once had.
According to the report, at least one former employee did not receive tokens that, at current market prices, would be worth millions of dollars, even though PUMP has fallen by about 79% from its 2025 peak.
The authors of the investigation also write that former employees told the publication about a second round of layoffs in mid-July. According to those sources, more than 40 people have left the company over the past two months. However, the journalists were unable to independently verify that information.
At the time of publication, Pump.fun did not comment on the allegations.