Pump.fun the Rug Pull Factory to Face US Lawsuit

Pump.fun Might Face Lawsuit Over Investor Losses

The U.S.-based Burwick Law is taking aim at Pump.fun, a Solana meme coin platform, for allegedly leaving investors high and dry while profiting from questionable practices.

Why Is Pump.fun in Trouble?

Burwick Law claims Pump.fun enabled harmful activities and left many investors worse off. Allegations include:

Profiting from livestreams where users performed stunts, including acts of cruelty and staged harm.
Failing to deliver on promises, resulting in significant financial losses for many users.

The firm has asked affected investors to join a potential lawsuit.

Pump.fun’s Shaky Reputation

Since its debut in 2024, Pump.fun has dominated the meme coin space, handling 70% of Solana’s token launches. But controversy followed as:

Livestreaming promotions pushed ethical boundaries before being suspended.
Speculative trading on the platform led to massive losses for the majority.

Most Users Don’t Profit

Data shows Pump.fun’s profits aren’t shared evenly:

0.4% of users made over $10,000 in gains.
Only 294 wallets earned over $1 million, leaving the majority far behind.

Regulatory Challenges

After receiving warnings from the UK’s Financial Conduct Authority (FCA), Pump.fun began blocking UK users in December. Critics say the platform benefits a small group while exposing others to high risks.

Easy Terms:

Pump.fun: A platform for creating and trading meme coins.
Meme Coins: Digital currencies based on internet jokes or trends, often risky.
FCA: The UK body that regulates financial services.