Pump.fun Hit with Cease and Desist Letter Over Alleged Intellectual Property Infringements

Solana-based meme coin deployer Pump.fun is facing another round of legal heat as allegations emerge that some tokens launched on the platform have violated intellectual property rights. The development comes after U.S. law firms Burwick Law and Wolf Popper LLP issued a cease and desist letter to Pump.fun on February 5.

The letter demands the immediate removal of several meme coins, including the Dogshit2 token, which allegedly misuses the names and logos of the law firms. The cease and desist letter also accuses Pump.fun of enabling these unauthorized deployments and failing to act despite having the technical ability to do so.

Allegations of Intellectual Property Violations and Deceptive Market Practices

According to the law firms, Pump.fun’s actions not only violate their intellectual property but also contribute to deceptive market practices, putting investors at risk. The firms claim that Pump.fun has played a role in broader efforts to “intimidate our clients and interfere with ongoing litigation.”

They point to meme coins designed to impersonate plaintiffs in the lawsuit, arguing that this represents “the use of blockchain technologies as a tool for disrupting justice and due process.”

Previous Lawsuits Against Pump.fun

The cease and desist letter follows two class-action lawsuits against Pump.fun, both led by Burwick Law and Wolf Popper LLP on behalf of investors. The lawsuits allege that Pump.fun profited from a pump-and-dump business model by aggressively marketing meme tokens that later lost a significant portion of their value.

Plaintiff Diego Aguilar claimed he suffered losses after purchasing tokens like Fwog and Griffain, which were initially pushed to high valuations before their prices plummeted. The complaint also accused Pump.fun of extracting nearly $500 million in fees from traders while running a scheme that allegedly mirrors elements of Ponzi structures.

Community Reaction and Controversy

Community members analyzed Exhibit C of the lawsuit, which demonstrated how easily tokens can be created on Pump.fun. The discovery led to speculation that Burwick and Law may have deployed the Dog Shit Going NoWhere (DOGSHIT2) token to strengthen its case.

Those holding the meme coin, meanwhile, have benefited from the controversy, as DOGSHIT2 surged over 170% in the past 24 hours, reaching an all-time high of $0.01437 on February 6β€”hours after the cease and desist letter was issued.

As of publication time, Pump.fun has yet to issue an official statement regarding the allegations or respond to the cease and desist letter.

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