Pump.fun has been accused by a U.S. law firm, causing user losses and drawing disdain from other founders in the Solana ecosystem.
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Pump.fun has been accused by a U.S. law firm, causing user losses and drawing disdain from other founders in the Solana ecosystem.
Law firm Burwick has accused Pump.fun of charging exorbitant fees while allowing the dissemination of various forms of harmful content, urging victims to join the lawsuit to recover some of their losses.
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On January 16, New York-based cryptocurrency law firm Burwick announced it will represent investors who suffered losses on the meme coin issuance platform Pump.fun in taking legal action against the platform. The firm alleges that while charging substantial fees, the platform has allowed various forms of harmful content to be published.
Burwick stated this move follows "months" of consultation with affected users who lost "significant amounts of money" due to memecoins, rug pulls, and unfulfilled promises on platforms like Pump.fun.
The law firm accused: "Over the past several months, Pump.fun has collected hundreds of millions of dollars in fees, while its platform has been flooded with antisocial behaviors including illegal drug use, self-harm, racism, anti-Semitism, obscenity, and violence. Although the platform's creators emphasize the importance of transparency in promotion and retail participation, they have chosen to remain anonymous, raising serious public concerns about their lack of accountability."
The firm is calling on victims harmed by Pump.fun to join potential litigation to seek compensation. It offers a way for users to potentially recover at least part of their funds—any affected user can fill out a form and contact Burwick.
Notably, Burwick states that this announcement is considered a "lawyer advertisement," does not guarantee results, and includes the disclaimer: "Past results do not guarantee future outcomes."
Pump.fun’s “Dark History” Continues
According to Dune Analytics data, since its launch in January 2024, Pump.fun has become a dominant force in the meme coin space, hosting over 6 million tokens issued by users.
While Pump.fun claims to serve as a gateway for non-technical users to launch tokens, the platform quickly became synonymous with speculation and risky behavior.
Pump.fun also faced widespread criticism for its now-suspended live-streaming feature. Launched in May last year, the feature sparked a "live-streaming meme coins" trend in November. However, due to inadequate content moderation, users engaged in dangerous and extreme acts during streams, such as animal abuse and fake suicide attempts.
In addition, just weeks before Burwick's lawsuit, journalist Jack Kubinec released a survey (of 42 founders) showing that a majority of Solana ecosystem project founders expressed disdain toward Pump.fun. In short, market hype coexists with poor reputation. Yet Burwick is not the first entity to initiate legal proceedings against Pump.fun.
In early December 2024, under pressure and stern warnings from the UK's Financial Conduct Authority (FCA), Pump.fun ceased its operations in the UK. Prior to the ban, London police investigated a fraudster on the Pump.fun platform who alleged large-scale fraudulent activity on the site.
Do Pump.fun Founders Profit While Most Users Lose Money?
From a financial standpoint, Pump.fun’s team appears to be doing quite well. According to Lookonchain data from January 14, Pump.fun has deposited 1,785,278 SOL ($359 million) into Kraken and sold 264,373 SOL for 41.64 million USDC. In total, Pump.fun has earned 2,241,890 SOL (approximately $410 million).
In stark contrast, most users have not benefited. Data from a Dune analyst shows that the majority of Pump.fun traders have yet to realize profits exceeding $10,000. Out of a total of 13,547,736 Pump.fun wallet addresses, only about 55,296 (0.408%) have achieved profits above $10,000.
Although Pump.fun’s founders later posted a rebuttal denying these revenue figures—claiming the total address count includes many bots and AI agents, fails to account for unrealized gains, and omits token purchases already linked with Raydium—the reality that most users face losses seems long settled.
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