Legal Actions Against pump.fun
On June 19, BlockBeats News highlighted that pump.fun is enlisting esteemed legal professionals to address a class-action lawsuit initiated by Burwick Law. The lawsuit contends that pump.fun engaged in the illegal sale of “highly volatile unregistered securities,” raising significant amounts of money without adhering to necessary compliance protocols. This legal action suggests potential links to serious allegations, including “terror financing, drug trafficking, and other transnational crimes.”
Details of the Lawsuit
Max Burwick, who founded Burwick Law, is leading this case alongside the law firm Wolf Popper, representing Kendall Carnahan and other plaintiffs in their claims against pump.fun. Known for its focus on the cryptocurrency sector, Burwick Law is involved in various other litigations and inquiries that target numerous cryptocurrency firms and tokens. According to Burwick Law, many digital tokens produced on pump.fun are akin to “pump and dump” schemes, characterized by manipulative behaviors detrimental to investors.
pump.fun’s Legal Representation
In light of these allegations, pump.fun’s parent company, Baton Corporation, has retained a prestigious legal team from the recognized firm Brown Rudnick. This team includes notable figures like Daniel L. Sachs, a former SEC investigator, crypto litigation specialist Kyle P. Dorso, and experienced crypto attorney Stephen D. Palley.
