Crypto Exchange Binance Hit With Cease and Desist Letter by Mark Longo, Owner of Internet Sensation Peanut the Squirrel, for Alleged Copyright Infringement

PNUT, the popular memecoin inspired by the squirrel, saw a nearly 10% decrease following the news.

Crypto exchange Binance has been hit with a cease and desist letter from Mark Longo, the owner of Peanut the Squirrel, over an alleged copyright infringement related to the popular memecoin PNUT.

As a result of the news, the memecoin’s value has dropped by nearly 10%.

Internet Squirrel Inspires Memecoin Frenzy

Mark Longo, also known as “Peanuts Dad,” announced on Sunday that his legal team had taken action against Binance. In an X post, he accused the exchange of using his intellectual property without authorization. Longo is the owner of Peanut the Squirrel, whose story became a viral internet sensation.

Peanut's adventures, captured in Longo's online videos, garnered half a million followers on Instagram. However, Peanut was later taken from Longo's home, along with a rescued raccoon named Fred, by authorities.

Both animals were euthanized for rabies testing, despite the Centers for Disease Control and Prevention not having approved antemortem testing methods for animals. Following the news, there was public outcry over Peanut's death, with several lawmakers criticizing the authorities' actions.

Peanut's story also inspired a wave of memecoins, leading to the creation of PNUT, a Solana-based memecoin. Amid the hype, the token rapidly gained popularity, reaching a market capitalization of $120 million in less than a week.

Binance announced the listing of the memecoin on November 11, and spot trading for PNUT began that same day. After the news, PNUT's price embarked on a significant rally, propelling it to the top 10 memecoins by market capitalization.

The token crossed the $1 billion milestone in less than a month, reaching a market cap of $2.27 billion before retracing. For the past month, PNUT has remained above the $1 billion mark, with its price fluctuating within the $1.80–$1.00 range.

Crypto Exchange Faces Cease and Desist

According to the letter shared by the animal rights activist, Binance has allegedly violated “the intellectual property rights owned by Mr. Longo.” His legal team claims that the exchange's use of a copyrighted photograph of Peanut the Squirrel wearing a cowboy hat and the “identical” trademark of “PEANUT THE SQUIRREL and PNUT” in the listed memecoin infringes their client's “various copyrights and trademarks.”

The letter requests that Binance acknowledge receipt of the letter by December 31st, 2024, and confirm that it "has ceased all infringing activity." Longo also disclosed in his post that this was the first of several cease and desist letters to be issued.

Following the news, PNUT faced a 10.2% dip, dropping from the $1.17 level to the $1.05 support in 24 hours. The retrace brought the token to levels not seen in over a month, as investors expressed concern over the memecoin's performance.

It's important to note that Longo has previously voiced his disapproval of the PNUT memecoin, alleging that the crypto community was profiting from his deceased pet. In response, he launched a memecoin called Justice for Pnut and Fred (JUSTICE), which faced its own controversy over insider trading allegations.

Longo also included another memecoin in his warning post, Justice for Peanut (JFP), which saw a 159% increase after the publication before shedding all its recent gains. At the time of writing, PNUT is trading at $1.10, down 5.1% in the daily timeframe.