Burwick Law pursues legal action against Pump.fun for investor losses

Burwick Law, a U.S. crypto law firm, has announced plans to initiate legal action on behalf of investors who have incurred losses from the Solana-based (CRYPTO:SOL) memecoin platform Pump.fun.

The firm made this announcement on January 15, stating that it has been working for months with individuals who have lost substantial amounts of money due to various issues associated with the platform, including rug pulls and unfulfilled promises.

Burwick Law highlighted that Pump.fun has reportedly amassed hundreds of millions in fees while allowing inappropriate content to be displayed on its platform.

The firm criticised the anonymous creators of Pump.fun, asserting that they exploit everyday investors through misleading practices.

Burwick's statement emphasised the need for accountability in an ecosystem that they claim is rife with scams and false promises.

According to data from Dune Analytics, only 0.4% of the 14 million crypto wallets that interacted with Pump.fun have made profits exceeding $10,000, indicating that Burwick’s potential client base could number in the millions.

The platform allows users to create and launch their memecoins without requiring technical skills, which has contributed to its rapid growth.

Burwick Law is also seeking members for a potential class-action lawsuit against Pump.fun as it investigates these claims further.

The UK’s Financial Conduct Authority recently restricted access to Pump.fun for its residents in an effort to combat scams in the crypto space.

In addition to this legal action, Burwick Law is pursuing separate lawsuits related to losses from other NFT projects, including Moonbirds and Proof Collective.

As the legal proceedings unfold, the firm aims to shed light on the practices within the memecoin market and seek justice for affected investors.