Burwick Law and Wolf Popper LLP File a Federal Class Action Against the Creators of Solana-Based Meme Coin Launchpad Pump.fun

The law firms filed the class action in the United States District Court for the Southern District of New York (SDNY) on behalf of crypto investors

A federal class action has been filed against the creators of Solana-based meme coin launchpad Pump.fun by Burwick Law and Wolf Popper LLP.

The class action was filed in the United States District Court for the Southern District of New York (SDNY) on behalf of crypto investors impacted by Pump.fun activities.

Pump.fun Accused of Displaying Offensive Content

In the complaint filed yesterday, the lead plaintiff, Kendall Carnahan, accused the creators of Pump.fun of exploiting users.

Despite claiming to support censorship resistance and financial freedom, the plaintiff alleged that Pump.fun had become a platform used to display activities relating to racism, torture, sexual content, and other social vices.

According to the complaint, the Pump.fun team allowed the circulation of offensive content to generate millions of dollars in fees.

Violation of Securities Laws

Additionally, the class action alleged that Pump.fun creators violated federal securities laws by offering and selling unregistered securities offerings. In particular, the complaint labeled Peanut the Squirrel (PNUT) as a security offered and sold on Pump.fun.

Based on the PNUT’s securities tag, the complaint alleged that the token issuers failed to register it with the SEC.

Furthermore, it accused Pump.fun creators of using tactics similar to Ponzi to generate over $500 million in fees from users. The plaintiff contended that Pump.fun leveraged internet culture to promote the adoption of volatile and unregistered securities tokens.

Per the complaint, Pump.fun created advanced tools that allowed malefactors to develop and sell worthless tokens in minutes. According to the complaint, some of these tokens are linked to offensive content, including racism and antisemitism.

The law firms, on behalf of Pump.fun users, requested a trial by jury for all eligible claims in the class action.

“We are proud to represent crypto investors in seeking accountability for the responsible advancement of blockchain technology,” the law firms said.

In the meantime, the law firms urge investors harmed by Pump.fun activities to support the class action by completing a no-cost, no-obligation intake form.

Pump.fun Controversy

Launched in January 2024, Pump.fun is one of the dominant players in the meme coin sector. Data from Dune Analytics show that Pump.fun has facilitated the launch of 6,123,826 (6.12 million) tokens.

Some of these token issuers leveraged Pump.fun’s now-suspended livestream feature to perform extreme stunts, including faked suicides.

Meanwhile, many criticized the Pump.fun team for enriching only a privileged few, particularly token issuers, leaving ordinary users in ruins.

Earlier this year, Adam Tehc, an analyst at Dune, claimed only 0.41% (55,012 wallets) of Pump.fun’s 13.4 million total wallets have made at least $10,000 in profit. He added that about 289 Pump.fun wallets have generated returns to the tune of a million dollars.

OK.

• If you've realized $1,000,000 trading pumpfun's you're a top 0.00217% wallet.

• If you've realized $100,000 trading pumpfun's tokens you're a top 0.048% wallet.

• If you've realized $10,000 trading pumpfun's tokens you're a top 0.412% wallet. https://t.co/LnOwFfs2kk

— Adam (@Adam_Tehc) January 9,025

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