
New York-based law firm Burwick Law has announced its intention to take legal action on behalf of investors against pump.fun, a Solana-based meme coin launchpad.
Pursues Legal Action Over Investor Losses
The law firm made a public anounncement this week, inviting people who have lost money from investing in memecoins to join the action and addressing the lack of accountability from pump.funโs creators.
โIn the past few months, Pump.fun 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,โ the message stated.
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The firm also emphasized that the platform’s creators remain anonymous, claiming that this โraises serious concerns about accountability.โ
The announcement follows months of working alongside โeveryday peopleโ who have lost significant amounts of money due to memecoins, rug pulls, and unfulfilled promises.
Burwick Law has also urged individuals affected by the platformโs practices to support a potential legal case, as they โmay be entitled to compensation.โ
Simplifies Token Creation But Faces Issues
Launched just a year ago, Pump.fun has rapidly gained traction within the crypto community. Its easy-to-use interface allows anyone to create and trade memecoins without significant investments or specialized programming knowledge.
Simplified token creation low barriers to entry, attracted large audiences, creating over 6.12 million memecoins and generating over $400 million over its first year.
Despite its growth, the platform faced more criticism for allowing unethical trading and becoming a hotspot for rug pulls. It also faced more regulatory scrutiny. The UK’s Financial Conduct Authority (FCA) warned pump.fun for operating without authorization, which led to it being blocked for UK residents.
Why This Matters
The legal action against pump.fun underscores concerns about the lack of regulation and accountability in the memecoin market. As platforms attract large audiences, the risk of fraud and exploitation grows, highlighting the need for better oversight to protect investors and ensure transparency.
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