A U.S. cryptocurrency law firm said it plans to take legal action on behalf of investors who suffered losses due to Solana’s memecoin launchpad Pump.fun.
“Today, Burwick Law publicly announced that we are pursuing legal action on behalf of investors in Pumpdotfun Memecoins,” Burwick Law said in a Jan. 15 post to X.
Burwick said he took this step after “months” of working with everyday people who lost “significant amounts of money” due to unfulfilled promises on platforms such as Memecoin, Carpet Puller and Pump.fun.
“Over the past few months, Pump.Fun has collected hundreds of millions of dollars in fees by displaying illegal drug use, self-harm, racism, anti-Semitism, pornography, bestiality, violence and other anti-social behavior on its platform,” he added.
source: Berwick Row
Burwick accused the creators of Pump.fun, who remained anonymous, and other “corrupt” individuals and companies behind memecoins and scams of trying to “exploit” ordinary people with false promises.
“Instead of realizing the potential of cryptocurrencies, this focus has led to an ecosystem that hides itself between cryptocurrency buzzwords, exploiting everyday people and discouraging projects that can have real social impact.”
The law firm requested participation in the investigation from members with potential class action lawsuits.
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The Solana-powered Memecoin Launchpad allows cryptocurrency enthusiasts to create and launch memecoins without any technical expertise.
Of the 14 million cryptocurrency wallets that interacted with Pump.fun, only 0.4% made more than $10,000, according to Dune analyst Adam Tehc. This indicates that Burwick’s customer base for this legal action could be worth millions.
Cointelegraph reached out to Pump.fun but did not receive an immediate response.
Pump.fun previously offered live streaming capabilities, but this was discontinued to prevent Memecoin creators from performing sometimes risky stunts to promote their token.
The UK’s Financial Conduct Authority banned UK residents from accessing Pump.fun in December as part of its latest measures to curb fraud.
Burwick is also pursuing separate legal action on behalf of investors who have suffered losses due to Moonbirds and Proof Collective non-fungible tokens and Full Send Metacard NFTs, who claim they were promised “unrealistic benefits” by the Nelk Boys.
source: Berwick Row
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