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
