Pump.Fun hit with lawsuit over alleged investor harm

Solana-based (SOL) memecoin-creation platform Pump.Fun is about to get hit with a lawsuit over alleged investor harm.

New York-based Burwick Law announced the intention to file a lawsuit against Pump.fun on behalf of investors. The company wrote in a recent X post:

“Today, Burwick Law is announcing publicly that we are pursuing legal action on behalf of investors in pumpdotfun memecoins. This announcement follows months of working alongside everyday people that have lost significant amounts of money to memecoins, rugs, and unfulfilled promises.”

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Today, Burwick Law is announcing publicly that we are pursuing legal action on behalf of investors in pumpdotfun memecoins. This announcement follows months of working alongside…

— Burwick Law (@BurwickLaw) January 15, 2025

Pump.Fun is a platform that allows anyone to launch a memecoin on the Solana blockchain without technical expertise. Its now-deleted promotional live-streaming feature was responsible for significant controversy as publicity stunts often breached absurd or illegal territory.

Per the announcement, Pump.Fun collected millions of dollars worth of fees while users on its platform displayed “illicit drug use, self-harm, racism, antisemitism, lewd acts, bestiality, violent and other antisocial acts.”

Per the firm, the crypto space is dominated by scams and speculative assets such as memecoins “that primarily benefit small pools of insiders and corrupt corporations.” Burwick Law believes that the trend is responsible for corruption crypto ideals:

“Instead of fulfilling crypto’s potential, this focus has led to an ecosystem that hides between crypto buzzwords to exploit everyday people and discourage projects that could drive real societal impact. ”

This is not the first time that Burwick Law takes on such a lawsuit. In early December, the firm took a similar initiative in representing HAWK memecoin holders after the token’s crash. The firm claims to be fighting for the crypto community:

“Burwick Law is proud to stand beside everyday crypto enthusiasts pursuing accountability and financial justice in web3. As a leading digital consumer protection law firm, Burwick Law represents thousands of clients in digital asset matters, from NFT/token transactional matters to complex securities litigation.”

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