Burwick Law, a U.S.-based crypto law firm, has announced plans to pursue legal action on behalf of investors who suffered losses tied to the Solana-based memecoin launchpad Pump.fun.
In a public statement on January 15, the firm revealed its intention to represent investors impacted by Pump.fun’s operations. “We are pursuing legal action on behalf of investors in Pump.fun memecoins,” the firm shared on X.
Profits for Few, Losses for Many on Pump.fun
Burwick Law stated that its decision follows months of working with individuals who lost significant amounts of money through memecoins, rug pulls, and unfulfilled promises linked to Pump.fun.
The firm accused Pump.fun of amassing hundreds of millions of dollars in fees while allowing harmful and antisocial content on its platform. The allegations include promoting dangerous stunts, antisemitism, racism, and other misconduct.
Burwick criticized the platform’s anonymous creators and others it described as “corrupt actors” who exploit everyday investors. “Instead of realizing crypto’s potential, this ecosystem hides behind buzzwords to take advantage of people and discourage meaningful projects,” the firm asserted.
Accusations of Exploitation and Harmful Content on Pump.fun
According to Dune analyst Adam Tehc, only 0.4% of the 14 million crypto wallets that interacted with Pump.fun made profits exceeding $10,000. This statistic highlights the vast number of potential investors who could join the legal action.
Pump.fun, a launchpad for memecoins, enables users to create and launch tokens without technical expertise. Despite its popularity, critics claim the platform has failed to provide promised benefits and has caused significant financial harm.
Previous Controversies and Regulatory Scrutiny
The platform has faced several controversies, including a now-suspended livestream feature that allegedly encouraged memecoin creators to perform dangerous stunts for promotion. In December, the UK’s Financial Conduct Authority banned residents from accessing Pump.fun, citing concerns over scams.
Broader Legal Efforts by Burwick Law
In addition to its case against Pump.fun, Burwick Law is pursuing separate legal actions against other projects. These include the Moonbirds and Proof Collective NFTs and the Full Send Metacard NFTs, which the firm claims misled investors with unrealistic promises.
The law firm has invited affected investors to join its investigation as it continues to address exploitation and scams in the crypto sector.
There should be a way to reduce the number of the rug pulls happening there.