Burwick Law Targets Pump.fun Over Investor Losses in Memecoin Scams
A U.S.-based crypto law firm, Burwick Law, has announced plans to initiate legal action on behalf of investors who suffered losses linked to the Solana memecoin launchpad, Pump.fun.
In a January 15 post on X, the firm revealed its intention to represent individuals affected by alleged scams, rug pulls, and unfulfilled promises associated with the platform.
Burwick Law claims it has spent months working with individuals who lost significant sums of money on memecoins promoted through Pump.fun. The firm accused the anonymous creators of the platform of profiting from unethical practices while fostering a toxic environment riddled with harmful content and antisocial behavior.
The law firm highlighted that Pump.fun collected substantial fees from users while allowing objectionable content, such as lewd and antisocial acts, to thrive on the platform. It further criticized the memecoin ecosystem for exploiting investors with exaggerated promises instead of promoting meaningful innovation within the crypto space. Burwick has called for victims to join its investigation, potentially forming a class-action lawsuit.
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Pump.fun, a Solana-based launchpad for memecoins, allows users to create and distribute tokens without requiring technical skills. However, data from Dune Analytics suggests that only 0.4% of the 14 million wallets that interacted with the platform achieved profits exceeding $10,000. This points to a vast pool of potential claimants for the legal case.
Attempts to reach Pump.fun for comment have so far been unsuccessful. The platform previously discontinued its livestream feature, which had been used by memecoin creators to perform risky stunts for token promotion. In December, the UK’s Financial Conduct Authority banned residents from accessing Pump.fun as part of broader efforts to combat scams.
In addition to its focus on Pump.fun, Burwick Law is pursuing legal cases tied to losses from other ventures, including the Moonbirds and Proof Collective NFTs, as well as the Full Send Metacard NFT project. The firm alleges these projects made unrealistic promises, leading to significant financial harm for investors.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
