Solana Memecoin Platform Pump. fun Hit With Lawsuit Over $500M and 200 Tokens

February 6, 2025 by Bena Ilyas

• Pump.fun, a Solana memecoin platform, faces a lawsuit for allegedly allowing tokens mimicking law firms’ names and logos, violating intellectual property rights.
• The lawsuit claims Pump.fun earned $500M in fees from unregistered securities and volatile token launches, causing investor losses.
• Despite legal challenges, Pump.fun hit $3.3B weekly trading volume, driven by themed memecoin launches.

Pump.fun, a Solana memecoin creation platform, got into legal controversy for allegedly having coins with a name and logo resembling two famous U.S. law firms’ names and logos. Two such companies, namely Burwick Law and Wolf Popper, have sued Pump.fun, and in a cease-and-desist letter on February 5, have asked them to act immediately

In a tweet posted on X (formerly Twitter), Burwick Law condemned Pump. Enjoying hosting tokens including “Dog Shit Going Nowhere” (DOGSHIT2) and a dozen others that use illicitly their intellectual property. The law firm added that over 200 tokens have been constructed on Pump. fun infringe the trademarks of Burwick Law, Wolf Popper, and its co-counsel after a week-old class-action case

Max Burwick, a managing partner at Burwick Law, supported claims and emphasized the severity of abuses. “In reaction to a filed class action a week ago, Pump. fun has published over 200 tokens encroaching onto our and our co-counsel’s brands’ IP,” confirmed Burwick.

Burwick Law Accuses Pump.fun of Financial Risks

Based on Pump. fun, many tokens have been generated with a range of name and logo pairs of the law companies in the case. Others even attacked individual workers and clients in the case. Based on Burwick Law, Pump. fun has technical capabilities for erasing such tokens but did not, posing a high level of legal and financial risk for the public.

The cease-and-desist letter further alleges that Pump.fun collaborated with third parties to intimidate plaintiffs and disrupt ongoing litigation by launching such tokens. “These acts represent the use of blockchain technologies as a tool for disrupting justice and due process,” the letter stated.

The controversy surrounding DOGSHIT2 has drawn attention, with some accusing Burwick Law of creating the token to bolster its case. Max Burwick denied these allegations, explaining that the token initially existed only as “memory on the server” and was only deployed on-chain when a buyer triggered its creation.

On January 30, Burwick Law and Wolf Popper filed a proposed class-action lawsuit in a New York federal court on behalf of investors. The lawsuit accuses Pump.fun of issuing unregistered securities and claims the platform earned nearly $500 million in fees from the tokens. The suit further alleges Pump.fun used guerilla marketing tactics to create artificial urgency around volatile tokens, causing retail investors significant losses.

Pump. fun Hits $3.3B Amid Memecoin Lawsuit

The plaintiffs seek rescission of all token purchases, financial compensation for affected investors, and court costs. Pump. fun is run, reports say, by UK entity Baton Corporation, which could not be reached for a statement.

Despite increased legal barriers, Pump.fun saw a boom in usage. As per Dune Analytics statistics a week ago, it hit an all-time high of $3.3 billion in trading volumes with memecoins with a theme surrounding the Trump family.

The case raises concerns about continued intellectual property violations and compliance with security laws in cryptocurrencies. As memecoins gain growing popularity, such court cases have the potential to redefine platforms for token creation and safeguarding investors.

The legal problem of Pump.fun is a lesson for platforms and developers entering the uncertain world of memecoins and cryptocurrencies. With its case in full swing, its resolution could have a big impact for the whole blockchain community.

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