Allegations of securities violations and price manipulation
Pump.fun, a widely used meme coin launchpad, has been at the center of legal scrutiny. Burwick Law and Wolf Popper LLP filed the first lawsuit on January 16, accusing the platform of facilitating the sale of unregistered securities and artificially inflating token prices before sudden crashes.
A second lawsuit filed on January 30 expanded these allegations, claiming Pump.fun operated a pump-and-dump scheme, extracting nearly $500 million in fees while aggressively promoting tokens that eventually lost most of their value. Investor Diego Aguilar, a plaintiff in the case, cited significant losses on Fwog and Griffain, two tokens that allegedly surged due to promotions before crashing.
Burwick claims Pump.fun users created offensive tokens targeting his family
As the lawsuit progressed, Burwick alleges that Pump.fun has been weaponized against him and his family. According to his claims, users created tokens referencing his cognitively disabled sister and his widowed mother, seemingly in an attempt to intimidate and harass him.
Among the most disturbing cases were tokens labeled “Help Max Burwick Sister (Rachel)” and “Max Burwick Retard Sister (Rachel),” as well as others that allegedly used his mother’s image. In a statement to crypto.news, Burwick condemned the attacks:
"I expect opposition in my work, but I will not tolerate threats and harassment directed at my family."
Legal team demands removal of offensive tokens
On February 5, Burwick Law and Wolf Popper LLP sent a cease and desist letter to Pump.fun’s operator, Baton Corporation Ltd. The letter demanded the immediate removal of multiple tokens allegedly misusing names, including Dogshit2 and other offensive token deployments.
The attorneys warned that continued inaction could lead to further legal consequences, arguing that these token creations were not only deceptive but also legally actionable under U.S. law.
Legal and ethical implications for the meme coin industry
With Pump.fun already facing multiple lawsuits, these new allegations further complicate the platform’s future. If proven, the creation of harassing and defamatory tokens could lead to additional legal liabilities, raising concerns over the risks of unregulated token launchpads.
As the crypto industry grapples with legal challenges, this case highlights the darker side of decentralized platforms, where anonymity can sometimes enable harassment and unethical behavior. Whether Pump.fun takes corrective action or faces greater regulatory pressure remains to be seen.
Next