Solana Meme Coin Platform Pump.fun Faces Cease and Desist
The Solana-based meme coin creation platform Pump.fun has been served with a cease and desist letter from two US law firms, Burwick Law and Wolf Popper, over claims that the platform is hosting tokens that illegally use their names and logos. Burwick Law issued a statement on X on Feb. 5, asserting that Pump.fun must remove tokens such as Dog Shit Going NoWhere (DOGSHIT2) and others that allegedly impersonate the firms and their intellectual property. Lawsuit and Allegations Against Pump.fun The cease and desist letter comes in the wake of a class-action lawsuit filed on Jan. 30 against the token launchpad. The lawsuit, brought forward by investor Diego Aguilar in a New York federal court, claims that the platform engaged in deceptive marketing tactics to promote volatile tokens, leading to significant financial losses for retail investors. Also read: Former Google Software Engineer Faces 175 Years in Jail for Allegedly Stealing Google AI Trade Secrets Burwick Law Managing Partner Max Burwick said that since the lawsuit was filed, Pump.fun users have created over 200 tokens that infringe upon the intellectual property of the firm and its co-counsels. Additionally, the platform’s users have allegedly created tokens using the names and images of Burwick Law employees and even one of their clients involved in the lawsuit. Burwick Law stated that Pump.fun has the technical ability to remove these tokens but has not taken action, despite the legal and financial risks posed to investors. Allegations of Intimidation and Disruption of Justice The cease and desist letter further claims that Pump.fun is collaborating with third parties to interfere with the lawsuit by allowing the creation of meme coins impersonating the plaintiffs. “These acts represent the use of blockchain technologies as a tool for disrupting justice and due process,” Burwick Law stated. At the center of the controversy is the DOGSHIT2 token, which some speculated was created by Burwick Law itself as part of the legal battle. However, Max Burwick denied any involvement, clarifying that the token existed only as memory on Pump.fun’s servers and was deployed onchain only after its first purchase. Pump.fun’s Role in the Meme Coin Boom Pump.fun has been a significant player in the meme coin space, allowing users to launch new tokens within seconds. The lawsuit alleges that the UK-based Baton Corporation, which allegedly operates Pump.fun, made nearly $500 million in fees from launching unregistered securities. Also read: Robinhood Suspends its Super Bowl Betting Product After Request from CFTC The platform saw record-breaking trading volumes last week, hitting an all-time high of $3.3 billion following the launch of Trump family-themed meme coins. Legal Consequences and Industry Impact The lawsuit accuses Pump.fun of violating the Securities Act and seeks: Rescission of all token purchases made through the platform Monetary damages for affected investors Litigation costs As regulatory scrutiny over meme coins and crypto platforms intensifies, the lawsuit against Pump.fun could set a precedent for how token creation platforms handle intellectual property rights and investor protections.