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New York-based law firm Burwick said it plans to sue Solana meme coin launchpad Pump.fun on behalf of investors who suffered losses engaging with the platform.
It made the announcement in a Jan. 15 X post, and said it comes after “months of working alongside everyday people who have lost significant amounts of money to meme coins, rugs, and unfulfilled promises.”
Pump.fun Allegedly Pocketed “Hundreds Of Millions”
The law firm said that the Solana meme coin launchpad generated “hundred of millions” through fees while illegal acts such as racism, acts of self-harm, drug use, antisemitism and other antisocial acts took place on the platform.
Pump.fun’s creator has “chosen to remain anonymous,” according to Burwick. This is even after the platform acknowledged the “importance of transparency in scaling and retail engagement,” the law firm added.
Burwick continued by saying that Pump.fun has created a crypto ecosystem that “hides” behind crypto buzzwords “to exploit everyday people.”
On-Chain Sleuth Says Those Who Lost Money To Meme Coins Are Not Victims
On-chain sleuth ZachXBT replied to Burwick’s X post, and said that anyone who chooses to “gamble” in meme coins with extremely low market capitalizations are not victims or investors.
Burwick’s founding partner, Max Burwick, replied in a shared comment, and described meme coin scams as a casino where the dealers are able to manipulate the card game.
This is a great point. Scratch-offs are regulated gambling, with clearly defined odds and no method for secondary market manipulation or rug pulls. You present an interesting analogy. But just like in a casino, regulated gambling is defined by rules and non-alterable statistics.…
— Max Burwick (@burwick_max) January 15, 2025
“The reality is that meme coins aren’t gambling in the traditional sense,” the founding partner said, before adding that these tokens are “speculative assets that can be manipulated” in several ways.
Pump.fun was the platform of choice for opportunistic developers that tried to capitalize on the meme coin hype in recent months. Last month, the platform collected $80.3 million in revenue, down on November’s $93.8 million in fees, according to DefiLlama data.
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