A US-based law firm, Burwick Law, has announced plans to take legal action against Pump.fun, a platform used to create memecoins. The firm claims that Pump.fun has caused financial harm to many investors and allowed harmful activities on its platform.
Pump.fun is a Solana-based platform launched in January 2024. It allows people to create and launch their own memecoins without needing technical skills. Since its launch, over 6 million tokens have been created through the platform.
What’s The Matter?
However, the platform has faced criticism. It became associated with risky investments and questionable activities. Many users lost money while only a small percentage made profits. Dune analyst Adam Tehc said that out of 14 million crypto wallets that interacted with Pump.fun, only 0.4% earned over $10,000 in profits. This suggests that most users faced losses.
Burwick Law announced on Jan. 15 that it is planning to take legal action on behalf of investors who lost money on Pump.fun. The law firm said it has been working with individuals who suffered significant financial losses due to memecoins, scams, and false promises on the platform.
The firm claims that Pump.fun collected hundreds of millions of dollars in fees but allowed harmful content on its platform. These include displays of illicit drug use, racism, antisemitism, self-harm, and other inappropriate acts. The platform also had a livestreaming feature that encouraged memecoin creators to perform dangerous stunts to promote their tokens. Some of these acts included animal abuse and faked suicides. This feature was later suspended.
Previous Government Actions Against Pump.fun
In December 2024, the UK’s Financial Conduct Authority (FCA) banned residents from accessing Pump.fun. The FCA cited the platform’s involvement in scams and risks to investors as reasons for the ban.
Burwick Law is encouraging investors affected by Pump.fun’s activities to join its investigation. The firm wants to hold the anonymous creators of Pump.fun accountable. It believes the platform has misused the potential of cryptocurrency to exploit everyday people instead of supporting meaningful projects.
Above all, this case is part of Burwick Law’s efforts to protect investors from crypto-related scams. The firm has also taken legal action against NFT projects like Moonbirds and Full Send Metacard, accusing them of making unrealistic promises.
