Thomas Daniels
Burwick Law’s founder, Max Burwick, accuses Pump.fun of taking advantage of investors, calling it “the evolution of MLM scams,” and he has a lawsuit ready.
Max Burwick, the founder and attorney of Burwick Law, called Pump.fun and related websites exploitative and described them as “the ultimate evolution of multi-level marketing scams” on January 15. According to Burwick, these initiatives take advantage of unsuspecting investors by using the digital attention economy to draw in younger viewers and people who are struggling financially.
Burwick asserts By presenting “exit liquidity” as a game, Pump.fun, a decentralized meme coin platform on the Solana blockchain, trivializes monetary losses. He claimed that the platform exploits addiction and young people instead of encouraging significant innovation, and he slammed it for going against the openness and fairness principles of blockchain.
Legal Action Is Started by the Meme Coin Controversy
Burwick Law, which represents people who have lost a lot of money as a result of rug pulls and false promises connected to Pump.fun, has declared its intention to sue the website. The company reported that millions of dollars had been lost by investors and created a special webpage to help those impacted.
Burwick also questioned the morality of Pump.fun’s anonymous designers by accusing the website of harboring offensive material, such as violent displays and antisocial actions. Dune Analytics reports that Pump.fun has made over $422 million in total sales, with $25 million coming in just the last week.
According to the company, Pump.fun facilitates rug pulls—schemes in which developers withdraw investor funds—instead than providing consumers with anything in the way of real support. According to Burwick, early adopters essentially steal from later participants in order to profit from the process.
Industry and Community Reaction
Following a live-streaming event in November 2024 in which a user threatened self-harm in order to promote his meme coin, the platform came under heavy fire, raising concerns among the cryptocurrency community. Pump.fun did not address the monetary losses incurred by its users, despite updating its moderation procedures following the incident.
Only 0.4% of the 14 million wallets using Pump.fun recorded gains over $10,000, according to research by wallet examiner Adam Tehc. This highlights the platform’s influence on the vast majority of its users.
In line with Burwick’s worries, Cosmo Jiang of Pantera Capital told Wire that “the majority of meme coins launched through Pump.fun wind up nearly worthless.”
The upcoming lawsuit from Burwick Law aims to hold Pump.fun responsible and emphasizes the necessity of more stringent regulation in the quickly changing cryptocurrency market.
