Burwick Law, a cryptocurrency-focused law firm, has filed a lawsuit against Solana-based platform Pump.fun, representing investors who allege significant financial losses due to the company’s coin trading operations. platform.
The company confirmed its intention to sue the platform Message. “Burwick Law is filing a lawsuit on behalf of investors in Pumpdotfun meme coins. If you lost money on Pumpdotfun coins, you may be entitled to compensation,” they wrote.
Burwick Law said its decision to take legal action comes after several months of working with individuals who have suffered significant financial losses from meme coins, rug pulls and broken promises in the crypto space .
“Over the past few months, Pumpdotfun has collected hundreds of millions of dollars in fees amid allegations of illicit drug use, self-harm, racism, anti-Semitism, lewd acts, bestiality, violence and other anti-social acts were displayed on the platform,” the company added. .
This legal action follows reports from on-chain analyst Adam Tehc, who revealed via his Dune dashboard that Pump.fun recorded a weekly trading volume of $2.2 billion.
The report found that of the 14 million wallet addresses on Pump.fun, only 57,144 users made profits above $10,000, with only 298 wallets – around 0.00217% – generating more than a million of dollars in returns.
The company also condemned the anonymous creator of the platform, highlighting a contradiction between its stated commitment to transparency for scaling and engagement with retail investors, and the lack of accountability.
The law firm is actively seeking individuals who may be part of a class action class to join the ongoing investigation.
The platform offers crypto enthusiasts the ability to create and launch their own tokens without requiring advanced technical skills. However, the platform was confronted growing criticism recently, notably for its live streaming feature, which allowed memecoin creators to broadcast promotional stunts, some of which were deemed dangerous or irresponsible.
In response to this backlash, Pump.fun suspended the live streaming service in an effort to prevent further incidents and mitigate potential harm to users and viewers.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be considered financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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