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Cryptopolitan 2025-01-16 08:40:06

US law firm targets legal action against Solana memecoin launchpad Pump.fun

US law firm targets legal action against Solana memecoin launchpad Pump.fun

A US-based crypto law firm has announced plans to initiate legal action on behalf of investors who incurred losses due to the Solana memecoin launchpad, Pump.fun. According to Burwick Law’s X post , the firm has been working alongside people who have lost significant amounts of money to memecoins, rugs, and unfulfilled promises. The company urged those investors who had incurred losses on any Pump.fun memecoins to come forward, as they may be eligible for compensation. Burwick Law criticizes Pump.fun for exploiting users and promoting harmful content Burwick Law asserts that Pump.fun has collected hundreds of millions of dollars in fees. At the same time, illicit drug use, self-harm, racism, antisemitism, lewd acts, bestiality, violence and other antisocial acts were displayed on the platform. The law firm notes that the creator of this platform has chosen to remain anonymous despite acknowledging the importance of transparency in scaling and retail engagement, which raises serious concerns about accountability. Part of the post reads: Instead of fulfilling crypto’s potential, this focus has led to an ecosystem that hides between crypto buzzwords to exploit everyday people and discourage projects that could drive real societal impact. – Burwick Law Pump.fun faces legal scrutiny over harmful content and limited profits Pump.fun, a Solana-based memecoin launchpad, allows crypto enthusiasts to create and launch their memecoins without needing technical knowledge. Its simple memecoin creation process has been celebrated by the community. In November, Solana saw its user base top 6.3 million active addresses , pushing SOL to an all-time high of $264.18. According to Dune analyst Adam Tehc, out of the 14 million crypto wallets interacting with Pump.fun, only 0.4% have made a profit exceeding $10,000. This suggests that Burwick’s client base for this legal action could number millions. Pump.fun had previously offered a livestream feature in November 2024, which was suspended to prevent memecoin creators from performing dangerous stunts to promote their tokens. After this incident, Pump.fun acknowledged the growing concerns about harmful and disturbing content on its platform and outlined steps to address the issue. The platform emphasized its commitment to ensuring user safety and stated that live streams will remain paused until a more robust moderation infrastructure is in place. In December, the UK’s Financial Conduct Authority banned its residents from accessing Pump.fun as part of its efforts to tackle scams. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

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