X Suspends Pump.fun and 19 Other Crypto Accounts Amid API Crackdown, Threatening $1B Token Launch

On June 16, 2025, X suspended the official account of Pump.fun, along with the personal account of its founder, Alon Cohen. The bans disrupted Pump.fun’s primary communication channel, critical for community engagement and market visibility during its planned $1 billion TGE at a $4 billion valuation.

The suspensions extended to other influential crypto accounts, at least 19 other accounts connected to the crypto trading platforms GMGN, BullX, Bloom Trading and the artificial intelligence agent tool Eliza OS were also taken offline, a list compiled by X user “Otto” shows.

GMGN stated via Telegram that they are appealing the ban and communicating with X to restore their account, while BullX attributed their June 13, 2025, suspension to “mass reporting” following rumors of platform closure.

This crackdown follows a recent wave of suspensions targeting prominent Chinese crypto influencers on X, likely triggered by the use of unofficial APIs. Regrettably, despite their appeals to the platform, six days later, some KOLs have resorted to creating new accounts.

These earlier bans suggest a broader enforcement pattern by X against crypto-related accounts. With no official explanation from X, the crypto community is left speculating about the reasons behind the latest suspensions.

Controversies and API Speculation

The suspensions have fueled theories within the crypto community. Many point to the use of third-party APIs, which bypass X’s official API costing $60,000 annually, as a likely cause, especially given the recent Chinese influencer bans linked to similar violations.

Pump.fun’s controversial “AutoRug” feature, rumored to enable automatic memecoin creation and closure, has also drawn scrutiny, with some associating it with “pump and dump” schemes. Users have reported unusual wallet activity, termed “liquidity harvesting 2.0,” raising concerns about platform integrity.

Pump.fun’s marketing representative, Braden, suggested on X that “mass reporting” could be behind the suspensions.

Earlier in 2025, Pump.fun faced legal battles over alleged securities law violations and promoting volatile memecoins, with litigation involving nearly $500 million in fees. Its live streaming feature also sparked outrage due to inappropriate content.

Alon Cohen, Pump.fun’s founder, had previously quipped on X that the platform “might have innovated too hard,” a remark now echoing amid the bans.

Timing Threatens Pump.fun’s TGE

The suspensions come at a critical juncture for Pump.fun, which is gearing up for a Token Generation Event (TGE) at a $4 billion valuation, aiming to raise $1 billion.

Recent blockchain data reveals Pump.fun has sold approximately 4.1 million SOL, totaling $741 million, since May 19, 2024, with an average price of ~$180. This includes a notable transaction of 264,373 SOL sold for 41.64 million USDC at $158, and a deposit of 3.84 million SOL, worth $699 million, to Kraken at $182.

The loss of X as a communication channel could erode user trust and hinder market momentum, especially for a platform dubbed a “DeFi slot machine” due to its rapid price fluctuations. Despite the bans, Pump.fun’s website and core functionalities remain operational, as do those of other affected platforms.

The lack of clarity from X has prompted some users to explore alternative platforms like Farcaster, reflecting frustration with X’s strict moderation. The broader crypto community is watching closely, as the suspensions highlight the challenges of navigating social media regulations and the delicate balance between innovation and compliance in the memecoin space.