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Only 0.4% of the 14 million crypto wallets that have interacted with Pump.fun have made a profit of over $10,000 — indicating that Burwick’s client base may be in the millions.
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A US crypto law firm says it is looking to launch legal action on behalf of investors who have suffered losses due to the Solana memecoin launchpad Pump.fun.
“Today, Burwick Law is announcing publicly that we are pursuing legal action on behalf of investors in pumpdotfun memecoins,” said Burwick Law in a Jan. 15 post on X.
Burwick said the move followed “months” of working with everyday people who lost “significant amounts of money” to memecoins, rug pulls, and unfulfilled promises on platforms like Pump.fun.
“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,” it added.
Source: Burwick Law
Burwick slammed the creators of Pump.fun — who remain anonymous — and other “corrupt” individuals and corporations behind memecoins and scams that purport to “exploit” everyday people with false promises.
“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.”
The law firm has asked for potential class-action group members to join the investigation.
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The Solana-based memecoin launchpad allows crypto enthusiasts to create and launch their memecoins without needing technical expertise.
Of the 14 million crypto wallets that have interacted with Pump.fun, only 0.4% have made a profit above $10,000, according to Dune analyst Adam Tehc — indicating that Burwick’s client base for this legal action could be in the millions.
Cointelegraph reached out to Pump.fun but didn’t receive an immediate response.
Pump.fun previously offered a livestream feature, but that was suspended to stop memecoin creators from performing sometimes dangerous stunts to promote their tokens.
The UK’s Financial Conduct Authority recently banned its residents from accessing Pump.fun in December as part of a measure to curb scams.
Burwick is also pursuing a separate legal action on behalf of investors who suffered losses from the Moonbirds and Proof Collective non-fungible tokens and the Full Send Metacard NFTs that it claims promised “unrealistic benefits” from the Nelk Boys.
Source: Burwick Law
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This article first appeared at Cointelegraph.com News
