- Burwick Law is expanding its investigations to 75-80 crypto projects, with 11 already becoming lawsuits targeting memecoins and promoters.
- Pump Fun platform is a central target in lawsuits, accused of facilitating “pump-and-dump” schemes and potentially enabling illicit activities.
- Memecoin enthusiasm is declining, with Pump Fun’s daily trading volume dropping 94% from January highs of $3 billion to just $170 million.
Crypto-focused legal firm Burwick Law is ramping up its regulatory offensive in the cryptocurrency space, announcing plans to launch an additional 15-20 investigations on top of its existing 60+ cases. The firm is targeting controversial projects including Hawk, Libra, and Pump Fun, according to a recent teaser shared on social media.
At least 11 of these investigations have already evolved into individual and class action lawsuits. The legal actions target a range of cryptocurrency projects including Libra, Pump Fun (aka Baton Corp), and promoters of tokens like Hawk, Game of Silks, Meta Eagle Club, Jenner, Eden Gallery, Midnight Hub, Roooms.TV, and STAKX. Additional tokens currently under investigation include dogwifhat (WIF), Vine (VINE), and Just a Chill Guy (CHILLGUY).
Pump Fun appears to be at the center of Burwick Law’s legal strategy. The firm alleges the memecoin platform facilitates "pump-and-dump" schemes while generating approximately half a billion dollars through the sale of what they describe as "highly-volatile unregistered securities."
In one lawsuit exhibit, Burwick Law claims that Pump Fun has become "a magnet for terrorist financing, drug trafficking, and other transnational crimes." The legal firm further contends that the platform is operating in contradiction to its own terms of service and violating various anti-money laundering regulations.
The allegations extend to serious security concerns. North Korean Hackers reportedly created a Pump Fun memecoin in an attempt to launder $1.5 billion stolen from crypto exchange Bybit. Additionally, analysts at Lookonchain suggest that insiders from the Javier Milei-associated Libra token launch are engaged in similar activities.
As legal pressure intensifies, public interest in memecoins appears to be waning. Pump Fun has experienced a dramatic 94% decrease in daily trading volume for graduated token launches, falling from January highs of $3 billion to approximately $170 million, reportedly.
According to @hashed_official’s Dune analytics data, the number of deployed tokens on the platform has plummeted 83%, dropping from a January peak of 71,738 to just 12,036 tokens today, signaling a significant cooling of the memecoin market as regulatory scrutiny increases.
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