Pump.fun Caught in Legal Crosshairs With Cease and Desist Order

Two law firms have issued a cease and desist order against Solana-based memecoin launchpad Pump.fun.

Background

• Burwick Law and Wolf Popper LLP co — the firms suing the platform — have alleged that users have created a range of tokens impersonating their companies
• Specifically, they infringe upon their intellectual property [including company names and logos], employees, and other plaintiffs involved
• In turn, they have demanded the platform to remove these tokens
• In a released statement, the firms assured that Pump.fun has the technical capability to do so
• They contend that the platform has chosen not to act despite the financial and legal risks posed to the public

Why should you pay attention?

• Hundreds of memecoins that apparently impersonate Burwick and Wolf Popper are listed on the Solana launchpad
• Few tokens are a couple of months old, while the others are a few days old

• The law firm has also demanded the removal of the Dogshit2 token
• They allege that Pump.fun’s promoters “are actively pushing” the Dogshit2 token in a “high-risk pump-and-dump scheme”
• The OG DOGSHIT2 token currently has a market cap of $6.2 million

Who said what?

• The law firms clarified,

“Our firms have no affiliation, endorsement, or ownership interest in the Dogshit2 token or related assets. Simply put, our firms have not launched any memecoins on-chain.

"Any further unauthorized use of our firms’ names, intellectual property, or association with this token may result in immediate legal action”

• They added,

“These acts represent the use of blockchain technologies as a tool for disrupting justice and due process. Legal remedies for any such misconduct will be pursued to the fullest extent of the law”

Zooming out

• Burwick Law and Wolf Popper filed a proposed class-action lawsuit on behalf of investors towards the end of last month
• They claimed that tokens listed on the platform are unregistered securities
• Despite not adhering to the legal standards, the platform allegedly earned nearly $500 million via fees
• The suit was filed by Diego Aguilar in a New York federal court
• His filing claimed that Pump.fun marketed the “highly volatile” tokens in a way that instilled artificial urgency
• In retrospect, retail investors had to bear significant losses, he affirmed

Other related reads/listens

• Pump.Fun Faces Another Class Action Lawsuit: Here Is The Reason
• Pump.fun Unveils Upgraded Terminal, Hints at Token Launch