A US regulation agency has revealed plans to take authorized motion in opposition to Solana-based meme coin launchpad Pump.enjoyable on behalf of traders, citing months of questionable promotional actions by platform customers.
New York-based Burwick Legislation, which not too long ago filed a federal lawsuit in opposition to the creators of the ill-fated Hawk Tuah meme coin, made its announcement on X on Wednesday.
“Up to now few months, pumpdotfun has collected a whole bunch of tens of millions of {dollars} in charges whereas illicit drug use, self-harm, racism, antisemitism, lewd acts, bestiality, violent and different delinquent acts have been displayed on the platform,” the regulation agency alleged.
The agency has referred to as on people impacted by Pump.enjoyable’s practices to come back ahead and contribute to a possible authorized case to hunt restitution.
Its announcement follows months of collaboration with people who, Burwick mentioned, are searching for remediation after shedding “important quantities of cash to meme cash, rugs, and unfulfilled guarantees.”
Burwick claims these points increase critical questions concerning the lack of accountability from the platform’s “nameless” creators.
It’s value noting that the announcement is taken into account “legal professional promoting” the place “no outcomes assured” alongside the caveat that “previous outcomes don’t assure future outcomes,” Burwick mentioned.
Pump.enjoyable’s troubled legacy
Since its launch in January 2024, Pump.enjoyable has been a dominant power within the meme coin sector, chargeable for the creation of over 6 million tokens, as per Dune Analytics knowledge.
Whereas it promoted itself as a gateway for customers with out technical experience to launch tokens, the platform quickly grew to become synonymous with speculative buying and selling and dangerous habits.
Pump.enjoyable attracted criticism for its now-suspended livestreaming function, the place customers carried out excessive stunts to advertise their tokens.
This included acts that pushed moral boundaries and cruelty, similar to animal abuse and a faked suicide.
In the meantime, the UK Monetary Conduct Authority banned its residents from accessing the platform in December, citing dangers to traders.
Regardless of its success in producing income, Pump.enjoyable has come below fireplace for cultivating a system the place a privileged few thrive whereas others are left to bear the brunt of economic damage.
Knowledge exhibits that solely 0.4% of wallets on the platform have realized income exceeding $10,000, casting doubt on its equity to on a regular basis customers.
Pump.enjoyable has not but responded to Decrypt’s request for remark.
Edited by Sebastian Sinclair
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