The legal battle surrounding Pump.fun, the Solana-based meme coin creation platform, is heating up. What started as a class-action lawsuit over allegations of unregistered securities sales few days ago has evolved into a much larger controversy involving accusations of fraud, intimidation tactics, and intellectual property violations. The latest developments raise new questions about the platform’s future and whether it can survive the mounting legal pressure.
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The Initial Lawsuit: A $500 Million Controversy
It all began on January 30, when investor Diego Aguilar filed a class-action lawsuit in New York federal court. His claim? That Pump.fun and its parent company, Baton Corporation, had facilitated the creation and sale of unregistered securities, generating nearly $500 million in fees. Aguilar argued that every meme coin launched on the platform was, by definition, an unregistered security.
Beyond that, the lawsuit accused Pump.fun of fostering an environment that encouraged risky speculation and pump-and-dump schemes. Aguilar, who lost money trading tokens such as FWOG, FRED, and GRIFFAIN, pointed to the platform’s automated tools, which allow anyone to launch a new coin in minutes. The complaint argued that because Pump.fun controlled the infrastructure, liquidity, and pricing mechanisms of these tokens, it acted as a “joint issuer,” making it liable under U.S. securities law.
Pump.fun did not immediately respond to the allegations, nor did its founders, Alon Cohen, Dylan Kerler, and Noah Tweedale. However, the lawsuit set off a firestorm in the crypto community, with debates over whether meme coins should be classified as securities and whether platforms like Pump.fun should be held accountable for the losses incurred by their users.
A Strange Twist: The DOGSHIT2 Coin Connection
Just days after the lawsuit was filed, an unexpected twist emerged. Members of the crypto community discovered that an address listed in court documents as evidence of how easy it is to create a token on Pump.fun was linked to a meme coin called Dog Shit Going NoWhere (DOGSHIT2). The token, which had been created months earlier, suddenly spiked in value, reaching a market cap of $23 million before crashing back down to $2.4 million.
This raised suspicions that Burwick Law, one of the firms leading the lawsuit, might have been involved in the token’s creation. Managing partner Max Burwick denied the claims, explaining that the token had been “memory on a server” until someone purchased it, triggering its deployment. He insisted that neither Burwick Law nor Wolf Popper LLP, the other firm behind the case, had any involvement in launching DOGSHIT2.
Still, the revelation fueled speculation that the lawsuit might be more than just an effort to protect investors. Some accused the firms of attempting to manipulate the market, while others argued that Pump.fun itself had orchestrated the connection in an attempt to discredit the legal action.
Allegations of Intimidation and IP Violations
And here we are today, when the situation escalated once again. Burwick Law and Wolf Popper issued a cease-and-desist letter to Pump.fun, demanding the removal of over 200 meme coins that had allegedly been created using the names, logos, and personal details of the law firms and their employees. The firms accused Pump.fun of using these tokens as a form of harassment and intimidation against those involved in the lawsuit.
According to Burwick Law, Pump.fun has the technical ability to remove these tokens but has so far refused to do so. The firms claim that this is part of a broader effort to interfere with the legal proceedings and intimidate plaintiffs.
The cease-and-desist letter also alleged that Pump.fun had enabled the creation of tokens promoting antisemitism, racism, and explicit content, further calling into question the platform’s moderation policies. While some users defended Pump.fun, arguing that the platform simply provides tools for token creation and should not be held responsible for what people do with them, others saw this as evidence that the company had little interest in enforcing ethical or legal standards.
What Happens Next?
With multiple lawsuits now filed against Pump.fun and growing scrutiny over its business model, the platform’s future remains uncertain. Its defenders argue that it has democratized meme coin creation, allowing anyone to participate in a market that was once dominated by insiders and developers with technical expertise. However, its critics see it as an unregulated Wild West that thrives on speculation and exploits retail investors.
The next big test for Pump.fun will come on February 20, when Baton Corporation is required to respond to the lawsuit. If the case proceeds, it could set a precedent for how automated token launch platforms are regulated in the U.S. and whether they can be held liable for the projects they facilitate.
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