Burwick Law: Over 500 Investors Pursue Legal Action Against pump.fun

Just two weeks after the details surrounding the pump.fun ICO were leaked, pump.fun’s path to TGE has hit another roadblock.

Burwick Law, a prominent crypto law firm, has over 500 clients taking legal action against the viral launchpad. Meanwhile, all pump.fun 𝕏 accounts, including co-founder alon’s personal account, have been suspended.

Is the suspension of pump.fun accounts linked to legal cases against the viral app? 

Crypto Law Firm Reports 500+ Claims Against pump.fun

One of the most polarizing applications in crypto history, pump.fun’s success has certainly divided opinions across the industry. While advocates have called pump.fun “the world’s greatest casino”, detractors have pointed out that the odds are heavily stacked against traders.

Dune Analytics data from various sources indicates that remarkably few users are actually generating a profit on the platform.

Burwick Law, a firm specializing in crypto law, claims it now represents over 500 clients who are taking legal action against pump.fun. SolanaFloor engaged Burwick Law for further clarity on the charges its clients were laying against the viral token launchpad. At press time, Burwick Law has declined to comment.

Burwick Law’s combative stance against the trenches isn’t limited to pump.fun alone. The firm recently invited traders who had lost money using trading platforms like Photon, BullX, and GMGN to let Burwick Law represent them in the search for compensation. 

Ariel Givner, a respected crypto lawyer and MonkeDAO legal representative, has pushed back on Burwick Law’s social media habits. Givner suggests that pump.fun’s ongoing account suspension likely has little to do with the legal actions of Burwick Law’s clients, calling the firm’s social presence a “insanely well-coordinated engagement strategy.”

Pump.fun Socials Social Accounts Suspended

On June 16th, pump.fun and its operators were caught in the crosshairs of widespread account suspensions across 𝕏.

While pump.fun’s critics have been quick to suggest that the suspension is part of a larger, coordinated effort to bring down the platform, it appears that the reality of the situation is more technical.

In recent weeks, dozens of crypto-related 𝕏 accounts have been suspended. One theory is that, to avoid the 𝕏 API’s high usage costs, certain accounts have turned to blackmarket alternatives. As part of a platform-wide crackdown, 𝕏 is automatically suspending any account with ties to third-party APIs.

Additionally, 𝕏 has blocked users from posting pump.fun links, which the social media giant has now marked “harmful”. However, some users have reported that they are still able to share pump.fun links, so whether this is linked to the account’s suspension remains unconfirmed.

$PUMP Hits $6 in Pre-Market Trading Before Pausing

Amidst pump.fun’s social media dramas, its native token, $PUMP, made its pre-market trading debut. Listed on aevo, an EVM-based perpetual trading platform, pre-market $PUMP was trading hands at $6.04, before trading was paused. 

With official tokenomics and supply yet to be revealed, pre-market traders cannot be certain of the valuation at which they are trading $PUMP tokens.

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