US law firm, Burwick Law, has decided to file a lawsuit against memecoin platform, Pump.fun. As shared on X on Jan. 15, 2025, the law firm publicly announced its plan to stand for investors that lost their funds on the platform. While no results are promised, Burwick seeks remediation for investor losses caused by the Pump.fun’s practices.
https://twitter.com/BurwickLaw/status/1879576509612269584
Impending Pump.fun Lawsuit
Burwick’s announcement to sue Pump.fun comes after several months of the law firm engaging with investors that have lost large amounts of funds through memecoins, rugs and fake promises.
“Pumpdotfun has collected hundreds of millions of dollars in fees while illicit drug use, self-harm, racism, antisemitism, lewd acts, bestiality, violent and other antisocial acts were displayed on the platform. Burwick wrote on X. “The creator of this platform has chosen to remain anonymous…which raises serious concerns about accountability,” it added.
According to Burwick, the crypto sector is full of scams and speculative assets which benefit only a few insiders and organizations at the expense of investors. Burwick has thus called on all the investors affected to fill out an intake form. This will facilitate a potential legal case for restitution.
Pump.fun’s Bad Reputation
Pump.fun was launched in January 2024. However, a year later the platform has become infamous for bad practices that have seen investors lose millions. Token owners have used the Pump.fun’s live streaming feature to fuel FOMO through rare stories, resulting in pump-and-dump schemes.
While the live streaming feature is now suspended, the bad behavior seen on the platform saw Pump.fun face criticism and even a ban. In December 2024, the UK Financial Conduct Authority banned residents from accessing the platform. The UK ban came after an investigation whereby an exploiter, Jarrett Bunn, warned about Pump.fun using the platform for fraud.
Despite Pump.fun positioning itself as a revenue generating giant as indicated by Dune analytics, the platform is seen to benefit small pools of insiders at the expense of most crypto. Furthermore, only a few wallets have managed to make over $10,000 in profits.
Burwick Law Against Rug Pulls
On Dec. 19, 2024, Burwick Law announced representation for investors that made losses in the Hawk Tuah ($HAWK) rug pull. With a lawsuit against Pump.fun also on the horizon, Burwick takes pride in standing with crypto enthusiasts to pursue accountability and financial justice.
Burwick has not yet issued any details about any damages or charges against Pump.fun. The firm also made it clear that its recent announcement is just attorney advertisement and no results are guaranteed.
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