- Burwick Law is preparing a lawsuit against Believe, alleging that its crypto app facilitated scams targeting retail investors.
- The Believe app allows users to quickly create and link tokens to projects via social media, with minimal oversight or disclosures.
- Burwick Law claims experienced operators used the platform to promote unregistered and potentially deceptive offerings.
- The app platform’s disclaimer states that users must not present tokens as investments or sources of profit.
- Burwick Law reports it represents over 3,800 clients with more than $10 billion in claimed crypto losses and is pursuing additional actions in the memecoin market.
Burwick Law has announced plans to take legal action against the crypto firm Believe, alleging the company’s app was used to defraud individual investors. The firm is currently gathering potential claimants as it prepares the case.
The Believe platform is part of a new trend known as “Internet Capital Markets.” This approach, according to a report from Decrypt, lets anyone raise funds by creating digital tokens for their projects or communities. On Believe, users can launch a token in seconds by tagging an affiliate account, “@launchcoin,” on the social media platform X.
Burwick Law has publicly criticized these practices. The firm stated, “So-called ‘Internet capital markets’ promise frictionless token launches, yet many offerings arrive with minimal disclosures and little regard for consumer protection.” They argue that retail investors are exposed to risk when offerings come with unclear information about who holds the project’s funds or manages fees.
It further said, “On platforms like Believe, anyone can spin up a coin in seconds and market it as ‘utility’ or ‘ownership’ without real transparency about who controls liquidity, fees, or treasury wallets.” Burwick contends that the promise of decentralized access to investment capital has been exploited by sophisticated actors using the platform to scam retail buyers.
To address legal risk, Believe includes a disclaimer for users. The company instructs that tokens launched on its app should not be marketed as digital merchandise, equity, company ownership, investment products, or expected to provide financial returns. Token creators receive half of the collected fees, while Believe keeps the remaining portion.
Burwick Law is active in multiple crypto-related lawsuits and reports that it currently represents 3,800 clients with over $10 billion in alleged losses. Other targets for legal action from the firm include the memecoin launchpad Pump Fun and developers behind the “HAWK” token, which is named after internet personality Hailey Welch.
Protos has reached out to Burwick Law for additional comment and will update if more information becomes available.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bitcoin Dev Ben Allen Gets $100K Grant for Payjoin Privacy Tool
- JPMorgan Chase to Enable Crypto Purchases for Clients, No Custody
- KuCoin Pay Teams With AEON to Boost Crypto Mobile Payments in Asia
- SAG-AFTRA Files Complaint After Fortnite Replaces Actors With AI
- Bitcoin Surges Past $107,000, Hits Highest Level in Four Months
