Burwick Law, a New York-based firm, plans to initiate legal action against Pump.fun, a Solana-based website that allows users to create memecoins. The firm is representing investors who have lost money on the platform, arguing that Pump.fun failed to keep its promises and exploited its consumers for financial advantage.
According to Burwick, Pump.fun has earned hundreds of millions of dollars in fees while encouraging the promotion of illegal information on its platform, including self-harm, bigotry, and even violence. These distressing behaviors were broadcast using Pump.fun’s livestream feature, which has subsequently been stopped due to reports of hazardous content. The law firm noted that the platform’s developers remain unidentified, raising questions about openness and accountability.
Despite the controversy, Pump.fun has been very successful in terms of volume, accounting for more than 70% of token launches on the Solana network. However, figures show that only a small percentage of users have generated significant earnings, with 0.4% of wallets earning more than $10,000. This highlights a significant disparity between a few successful traders and the vast majority who have lost money.
The legal action comes after months of working with people who have lost a lot of money due to scams, rug pulls, and other illegal operations promoted on the platform. Burwick Law has extended its appeal to those who have suffered injuries from Pump. It’s exciting to participate in the investigation as part of a prospective class-action lawsuit.
While Pump.fun has not yet responded to inquiries, the firmâ€TMs latest move is a significant step in addressing what it sees as an ecosystem rife with manipulation, where insiders thrive while everyday users bear the financial consequences.
Burwick Law’s action serves as a reminder of the risks associated with platforms like Pump, as scams and speculative trading continue to plague the cryptocurrency market. fun.
