A US law firm has revealed plans to take legal action against Solana-based meme coin launchpad Pump.fun on behalf of investors, citing months of questionable promotional activities by platform users.
New York-based Burwick Law, which recently filed a federal lawsuit against the creators of the ill-fated Hawk Tuah meme coin, made its announcement on X on Wednesday.
“In the past few months, Pump.fun 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,” the law firm alleged.
The firm has called on individuals impacted by Pump.fun’s practices to come forward and contribute to a potential legal case to seek restitution.
Its announcement follows months of collaboration with individuals who, Burwick said, are seeking remediation after losing “significant amounts of money to meme coins, rugs, and unfulfilled promises.”
Just 0.4% of Pump.fun Traders Have Made More Than $10,000 on Solana Meme Coins
Sometimes it feels like everyone is making money all of the time in crypto, but that’s not the full truth. In fact, just 0.4% of Pump.fun traders have profited $10,000 or more trading on the meme coin platform. Dune data analyst, Adam Tehc, found that only 55,012 wallets of the over 13.4 million on the platform have realized $10,000 in profit or more—that’s just 0.4% of wallets. As for the mythical crypto millionaire, only 294 wallets have realized a profit of more than $1 million, which is appr...
Burwick claims these issues raise serious questions about the lack of accountability from the platform’s “anonymous” creators.
It is worth noting that the announcement is considered “attorney advertising” where “no outcomes guaranteed” alongside the caveat that “past results do not guarantee future results,” Burwick said.
Pump.fun declined comment to Decrypt on the matter.
Pump.fun’s troubled legacy
Since its launch in January 2024, Pump.fun has been a dominant force in the meme coin sector, responsible for the creation of over 6 million tokens, as per Dune Analytics data.
While it promoted itself as a gateway for users without technical expertise to launch tokens, the platform soon became synonymous with speculative trading and risky behavior.
Pump.fun attracted criticism for its now-suspended livestreaming feature, where users performed extreme stunts to promote their tokens.
Pump.fun Responsible for 70% of Token Launches on Solana Network
Token launchpad Pump.fun has been responsible for approximately 70% of all transactions on the Solana network over the past two days. Its Saturday dominance is the highest since the platform disabled its controversial streaming feature in November. Over the past week, Solana (SOL) has climbed 12%. The upward trajectory has, in part, been motivated by its meme coin trenches. Pump.fun is the go-to spot for most meme coin creating, buying, and selling with over 5.5 million tokens being created on t...
This included acts that pushed ethical boundaries and cruelty, such as animal abuse and a faked suicide.
Meanwhile, Pump.fun began banning UK users from accessing the platform in December following a regulatory warning from the country's Financial Conduct Authority.
Despite its success in generating revenue, Pump.fun has come under fire for cultivating a system where a privileged few thrive while others are left to bear the brunt of financial ruin.
On-chain data shows that only 0.4% of wallets on the platform have realized profits exceeding $10,000, casting doubt on its fairness to everyday users. Pseudonymous Pump.fun co-founder Alon has said that such data is skewed due to multiple factors, however, including traders making a majority of their gains after a coin "graduates" from the platform once it reaches a $100,000 market cap.
Edited by Sebastian Sinclair
Editor's note: This article was updated after publication to correct the detail about the UK resident ban, add more context around trading data, and to note that Pump.fun had no comment on the matter once reached.
