United States law firm Burwick Law had initiated a lawsuit against Solana launchpad pump.fun. According to the crypto law firm, the lawsuit is being instituted on behalf of investors who have suffered losses on the platform.
According to its post on X, the law firm has decided to collaborate with users that have lost funds to rug pulls, unfulfilled promises, and memecoins. The firm has also called on all investors who have incurred losses on the launchpad, telling them they may be eligible for compensation.
Burwick Law criticizes pump.fun over its acts against United States users
According to its post, Burwick Law mentioned that pump.fun has collected millions of dollars worth of transaction fees from its users. At the same time, it alleged that various vices have been displayed on the platform including antisemitism, lewd acts, violence, self-harm, and racism.
The firm noted that the owner of the platform is still anonymous, despite knowing the importance of being transparent. It noted that it calls for concerns related to accountability. “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 post read.
Pump.fun faces scrutiny over harmful contents
Pump.fun is a Solana launchpad that allows users to launch memecoins without any deep knowledge of it. The simple creation process has been welcomed by the crypto community since its debut. The move has also helped Solana, pushing the token to $264, and its user base to 6.3 million active addresses.
According to a Dune Analytics report, only 0.4% of the 14 million crypto wallets interacting with the platform have made profits of more than $10,000. This means that Burwick’s legal pursuit could involve millions of people if they are all willing to come forward.
The platform previously launched a livestream feature but had to be cut off due to controversial issues related to user behaviors. The platform acknowledged the issue and listed steps it was taking to tackle it. It noted that the feature will be suspended till it comes up with an infrastructure to control it better. The platform has been banned in the UK, as the country continues to tackle crypto scams.