Burwick Law, a prominent US-based crypto law firm, has announced plans to pursue legal action against the Solana-based memecoin launchpad Pump.fun on behalf of investors who suffered significant financial losses. The firm aims to hold the platform accountable for alleged deceptive practices that have impacted millions of users.
Losses, Scams, and Allegations
In a January 15 post on X (formerly Twitter), Burwick Law stated its intention to represent individuals who lost money through memecoin projects launched on Pump.fun. The firm has been working with affected individuals for months, claiming that many investors fell victim to rug pulls, unfulfilled promises, and various scams.
Burwick accused Pump.fun’s anonymous creators of exploiting users and profiting from unethical behavior on the platform. According to the law firm, Pump.fun has collected “hundreds of millions of dollars in fees” while allowing harmful and offensive content, including antisocial behavior, to proliferate.
The firm criticized Pump.fun’s anonymous creators for fostering an exploitative ecosystem:
“Instead of fulfilling crypto’s potential, this focus has led to an ecosystem that hides behind crypto buzzwords to exploit everyday people and discourage projects that could drive real societal impact.”
Investor Losses and Platform Statistics
Pump.fun is a Solana-based platform that enables users to create and launch memecoins without technical expertise. Despite its popularity, data suggests that only a small percentage of users profit significantly. Dune Analytics researcher Adam Tehc revealed that of the 14 million wallets interacting with Pump.fun, just 0.4% earned over $10,000. This indicates a massive pool of affected investors who could join Burwick’s potential class-action lawsuit.
Burwick’s legal action comes amid heightened scrutiny of Pump.fun. The UK’s Financial Conduct Authority banned access to the platform in December to curb crypto-related scams. Pump.fun had previously suspended its livestream feature after memecoin creators used it to perform dangerous stunts to promote their tokens.
In addition to targeting Pump.fun, Burwick Law is pursuing separate lawsuits against other crypto-related projects, including Moonbirds NFTs, Proof Collective NFTs, and the Full Send Metacard NFTs. The firm alleges these projects misled investors with promises of “unrealistic benefits” and failed to deliver on their commitments.
