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New York-based law firm Burwick said it plans to sue Solana coin launchpad Pump.fun on behalf of investors who suffered losses while engaging with the platform .
He made this announcement on January 15 joband said it comes after “months of working alongside ordinary people who have lost significant sums of money to coins, rugs and broken promises”.
Pump.fun would have pocketed “hundreds of millions”
The law firm said the Solana coin launchpad generated “hundreds of millions” through fees, while illegal acts such as racism, self-harm, drug use , anti-Semitism and other anti-social acts took place on the site. platform.
The creator of Pump.fun has “chosen to remain anonymous,” according to Burwick. This is even after the platform recognized “the importance of transparency in retail scaling and engagement,” the law firm added.
Burwick went on to say that Pompe.fun has created a crypto ecosystem that “hides” behind crypto buzzwords “to exploit ordinary people.”
On-Chain Sleuth Says Those Who Lost Money to Meme Coins Are Not Victims
On-chain detective ZachXBT responded to Burwick’s X post and said that anyone who chooses to “play” with meme coins with extremely low market caps are neither victims nor investors.
Burwick founding partner Max Burwick responded in a shared comment and described coin scams as a casino where dealers can manipulate the deck of cards.
That’s an excellent point. Scratch games are regulated games of chance, with clearly defined odds and no methods of secondary market manipulation or stack pulling. You present an interesting analogy. But just like in a casino, regulated gaming is defined by unalterable rules and statistics.…
-Max Burwick (@burwick_max) January 15, 2025
“The reality is that meme coins are not gambling in the traditional sense,” the founding partner said, before adding that these tokens are “speculative assets that can be manipulated” in several ways.
Pump.fun was the platform of choice for opportunistic developers who attempted to capitalize on the meme coin hype over the past few months. Last month, the platform collected $80.3 million in revenue, down from November’s $93.8 million in fees, according to DefiLlama. data.
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