Burwick Law Firm files another lawsuit against Pump.fun platform and Solana-related parties

PANews, January 14 — According to DL News, the law firm Burwick Law has recently filed another lawsuit against the Pump.fun platform and Solana-related parties, accusing them of operating a "manipulated, unlicensed gambling operation." The complaint states that although Pump.fun is packaged as a game of chance, it is in fact a "rigged casino," with its leaders "secretly pre-determining winners and losers and extracting huge profits from retail participants." The lawsuit cites information allegedly obtained from the private messages of Pump.fun's founder, in which co-founder Alon Cohen admits that most investors will "lose money" when investing on the platform, and claims the platform "greatly democratized low market cap token trading, exposing everyone to the extremely low odds associated with gambling on such low market cap assets." The complaint also references allegations from anonymous KOLs, stating that they or their peers were paid to promote meme coins without disclosing the arrangement, and were given advance notice of token information to buy in before promotional campaigns launched.

However, the complaint does not provide conclusive evidence that Pump.fun coordinated these so-called pump-and-dump activities, nor does it prove that its executives directly profited from them. The core logic of the complaint lies in accusing the platform of failing to implement fair safeguards, such as not introducing random entry windows to reduce the advantage of bots and insiders in building positions first. Regarding the accusations against Solana, the complaint claims that its network speed, priority fee system, and congestion update in March 2024 enabled meme coin trading at scale, but this connection is considered tenuous by outsiders.