Pump.fun Faces Legal Action Over Alleged IP Violations and Market Manipulation

Solana-based meme coin creation platform Pump.fun is under legal scrutiny after receiving a cease and desist letter from Burwick Law and Wolf Popper LLP over alleged intellectual property (IP) infringement and market manipulation. The law firms accuse Pump.fun of facilitating the creation of more than 200 unauthorized tokens, many of which allegedly infringe on trademarks and impersonate established brands.

Burwick Law and Wolf Popper LLP have filed a class-action lawsuit against Pump.fun, claiming that the platform knowingly enabled the deployment of intellectual property-infringing tokens. Among the cited cases is a token named “Dog Shit Going NoWhere” (DOGSHIT2), which was allegedly created without permission.

The firms have publicly denied any association with these tokens and emphasized their intent to protect their clients, investors, and brand integrity. Pump[dot]fun has issued over 200 tokens infringing upon the IP of their brand and trademarks.

According to the legal filing, Pump.fun has the technical ability to remove these tokens but has refused to act, exposing investors to potential financial harm.

Beyond IP violations, the cease and desist letter further alleges that Pump.fun enabled the creation of tokens targeting individuals involved in the lawsuit, allegedly as part of an effort to intimidate legal opponents and interfere with litigation.

The law firms described these actions as a misuse of blockchain technology, stating:

“These acts represent the use of blockchain technologies as a tool for disrupting justice and due process.”

Burwick Law has vowed to take legal action against any parties involved in this misconduct.

Controversy Surrounding DOGSHIT2’s Origins

In a twist to the ongoing dispute, some crypto community members questioned whether Burwick Law deployed DOGSHIT2 as part of its case against Pump.fun.

Burwick, however, denied these allegations, explaining that DOGSHIT2 only existed off-chain as memory on Pump.fun’s server before being officially deployed when a buyer purchased it.

The legal battle against Pump.fun extends beyond intellectual property disputes. On January 30, 2025, Burwick Law and Wolf Popper LLP filed a class-action lawsuit on behalf of investors, accusing Pump.fun of facilitating the sale of unregistered securities.

The lawsuit, led by plaintiff Diego Aguilar, was filed in a New York federal court and names Pump.fun’s parent company, the UK-based Baton Corporation, as a defendant.

Among the allegations:

• Pump.fun allegedly uses deceptive marketing tactics to artificially inflate demand for meme tokens.
• The platform has reportedly generated nearly $500 million in fees from token launches.
• The lawsuit seeks monetary damages, rescission of all token purchases, and legal costs for affected investors.

This legal action follows a previous lawsuit filed in January, which accused Pump.fun of illegally selling Peanut the Squirrel (PNUT) tokens, an unregistered asset that once reached a $1 billion market cap.

Despite mounting legal pressure, Pump.fun continues to thrive. The platform recently recorded an all-time high of $3.3 billion in weekly trading volume and generated $121 million in revenue last month—a sign that interest in meme coin speculation remains strong.

However, critics—including Burwick Law—argue that platforms like Pump.fun exploit the meme coin frenzy, likening their models to multi-level marketing schemes designed to prey on investor desperation.

As legal battles unfold, the case against Pump.fun could set a precedent for regulatory oversight in the evolving meme coin market, determining how blockchain platforms handle intellectual property rights, investor protection, and compliance with securities laws.