Pump. Entertaining faces legal action after accusations of investment damage

A US law company has revealed plans to file a lawsuit against Solana-based image coin launcher Pump. Fun on behalf of buyers, citing times of software users ‘ questionable promotional efforts.

Burwick Law, a New York-based firm that recently filed a federal complaint against the authors of the illustrious Hawk Tuah image gold, made its announcement on X on Wednesday.

” In the past few decades, pumpdotfun has collected hundreds of millions of dollars in taxes while illegal drug use, self-harm, racism, antisemitism, sexual acts, unhide, violent and other violent acts were displayed on the platform”, the law firm alleged.

The organization has contacted the people who have been impacted by Pump. Fun’s methods to come forth and contribute to a potential legal action to get restitution.

Its announcement comes after months of working with people who, according to Burwick, are looking for financial gain after losing” significant sums of money to image coins, rugs, and unmet promises.”

Burwick claims these problems raise serious questions about the lack of transparency from the product’s “anonymous” makers.

It is worth noting that the statement is considered “attorney marketing” where” no result guaranteed” alongside the disclaimer that “past benefits do not guarantee future outcomes”, Burwick said.

Pump. fun’s troubled legacy

Since its launch in January 2024, Pump. According to data, Fun has been a dominant force in the meme coin market, contributing to the creation of over 6 million tokens.

The platform quickly became synonymous with speculative trading and risky behavior, even though it promoted itself as a gateway for users without technical expertise to launch tokens.

Pump. Users performed extreme stunts to promote their tokens during the now-suspended livestreaming feature, which attracted criticism. &nbsp,

This included acts that violated moral standards and were cruel, such as fake suicide and animal abuse. &nbsp,

Meanwhile, the UK Financial Conduct Authority banned its residents from accessing the platform in December, citing risks to investors.

Despite its success in generating revenue, Pump. Fun has received criticism for creating a system where the fortunate few prosper while the majority of the financial ruin is left to themselves.

Data indicates that only 0.4 % of platform wallets have made more than$ 10,000 in profits, which raises questions about how fair it is for regular users.

Pump. fun has not yet responded to Decrypt’s request for comment.