Pump.fun Receives Cease and Desist Over Intellectual Property Infringement

Cease and Desist Letter Sent to Pump.fun

Pump.fun, a platform known for generating memecoins on the Solana blockchain, has been served a cease and desist letter by US law firms Burwick Law and Wolf Popper. The letter, dated February 5, demands the immediate removal of certain tokens, including Dog Shit Going NoWhere (DOGSHIT2), which allegedly infringe on the firms' intellectual property by using their logos and names without permission.

Allegations of Intellectual Property Misuse

Since a class action lawsuit was filed against Pump.fun, the platform has reportedly created over 200 tokens that misuse the intellectual property of Burwick Law and Wolf Popper. These tokens include the names and logos of the law firms, as well as those of Burwick Law employees and one of their clients involved in the ongoing lawsuit. The law firms claim that Pump.fun has the capability to remove these tokens but has chosen not to, potentially exposing the public to financial and legal risks.

Accusations of Interference with Legal Process

The cease and desist letter also accuses Pump.fun of launching tokens in a manner that could intimidate plaintiffs and interfere with the legal process. Specifically, the creation of memecoins that mimic the plaintiffs has been highlighted as a point of contention. Burwick Law's managing partner, Max Burwick, has denied claims that the firm was involved in the creation of the DOGSHIT2 token, stating that the token was only a "memory on the server" until Pump.fun deployed it onchain.

Ongoing Class-Action Lawsuit

Burwick Law and Wolf Popper initiated a proposed class-action lawsuit on January 30 on behalf of investors. The lawsuit alleges that Pump.fun has generated nearly $500 million in fees from creating what they claim are unregistered securities. The legal action, filed in a New York federal court, accuses Pump.fun of engaging in guerrilla marketing tactics that led to significant losses for retail investors. The lawsuit seeks various forms of relief, including the rescission of all token purchases, monetary damages for investors, and coverage of litigation expenses.

Recent Surge in Activity

Pump.fun recently experienced a surge in activity, hitting a record $3.3 billion in weekly trading volume. This coincided with the release of Trump family-themed memecoins, further fueling the platform's popularity despite ongoing legal challenges. The platform, allegedly operated by the UK-based Baton Corporation, continues to face scrutiny over its business practices and compliance with securities laws.