Michaela Alvez
Burwick Law, a cryptocurrency-focused legal firm, has filed a lawsuit against the Solana-based platform Pump.fun, representing investors who allege significant financial losses due to the platform’s meme coin trading operations.
The firm confirmed its plans to sue the platform in an X post. “Burwick Law is pursuing legal action on behalf of investors in pumpdotfun meme coins. If you lost money on any pumpdotfun meme coins, you may be entitled to compensation,” they wrote.
Burwick Law said that its decision to take legal action comes after several months of collaborating with individuals who have suffered considerable financial losses from meme coins, rug pulls, and unmet promises in the crypto space.
“In the past few months, 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,” the firm added.
This legal action follows reports from on-chain analyst Adam Tehc, who revealed via his Dune dashboard that Pump.fun recorded a weekly trading volume of $2.2 billion.
The report revealed that, of the 14 million wallet addresses on Pump.fun, only 57,144 users have earned profits surpassing $10,000, with just 298 wallets — about 0.00217% — generating over $1 million in returns.
The firm also condemned the platform’s anonymous creator, highlighting a contradiction between their stated commitment to transparency for scaling and engaging with retail investors, and the lack of accountability.
The law firm is actively seeking individuals who may be part of a class-action group to join the ongoing investigation.
The platform offers crypto enthusiasts the opportunity to create and launch their own tokens without requiring advanced technical skills. However, the platform faced growing criticism recently, particularly for its livestream feature, which allowed memecoin creators to broadcast promotional stunts, some of which were deemed unsafe or irresponsible.
In response to the backlash, Pump.fun suspended the livestream service in an effort to prevent further incidents and mitigate potential harm to users and viewers alike.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
