Pump.fun Accused of Exploiting Investors: Legal Action Underway

Last Updated on January 16, 2025

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Key Takeaways:

  • Legal Action Initiated: Burwick Law has announced plans to pursue legal action against Pump.fun, a Solana-based memecoin launchpad, citing rug pulls, broken promises, and inappropriate platform content.
  • Allegations of Exploitation: The firm accuses Pump.fun of profiting massively while allowing harmful content and exploiting everyday users under the guise of crypto innovation.
  • Call for Class-Action Participants: Burwick invites affected investors to join a class-action lawsuit, with data suggesting millions of users may qualify based on low profit statistics.

A U.S.-based crypto law firm, Burwick Law, has announced plans for legal action against Pump.fun, a Solana-based memecoin launchpad, on behalf of investors alleging losses from rug pulls and broken promises.

The firm claims Pump.fun has earned hundreds of millions in fees while enabling harmful and inappropriate content, such as displays of drug use, racism, and antisocial acts.

Burwick criticized the platform’s anonymous creators for exploiting users and undermining crypto’s potential societal impact.

Pump.fun allows users to create memecoins without technical expertise.

However, a Dune analysis revealed that only 0.4% of its 14 million wallets generated profits over $10,000, indicating significant losses for most users.

Burwick is calling for affected investors to join a potential class-action lawsuit, while the platform faces ongoing regulatory scrutiny.

In December, the UK’s Financial Conduct Authority banned Pump.fun to curb scam activities.

This legal move is part of broader actions by Burwick, targeting other crypto ventures like Moonbirds, Proof Collective NFTs, and Full Send Metacard NFTs for alleged false promises.

Pump.fun has not publicly responded but previously disabled its livestream feature to address concerns over dangerous stunts.

The lawsuit signals rising accountability within the crypto industry.

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Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.

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