Pump.fun Receives Cease and Desist Order Over Meme Coin IP Violations

TLDR

• A cease and desist letter was issued to Solana’s Pump.fun by U.S. law firms over alleged unauthorized meme coin deployments and IP violations
• Two class-action lawsuits were previously filed against Pump.fun, with claims of running a pump-and-dump scheme and extracting nearly $500 million in fees
• The controversy deepened when community members found connections between the law firms and one of the contested tokens (DOGSHIT2)
• The platform is accused of enabling deceptive market practices and using blockchain technology to interfere with legal proceedings
• Despite the legal pressure, the controversial DOGSHIT2 token surged 170% in value after the cease and desist letter was issued

The ongoing legal saga surrounding Solana-based meme coin platform Pump.fun took another turn on February 5, 2025, when U.S. law firms Burwick Law and Wolf Popper LLP issued a cease and desist letter demanding the removal of several tokens allegedly violating intellectual property rights.

The platform, which allows users to create and deploy meme coins on the Solana blockchain, has become a center of controversy due to hundreds of tokens created by users, including those themed around the law firms themselves and Burwick’s managing partner, Max Burwick.

FOR IMMEDIATE RELEASE

Burwick Law and Wolf Popper LLP Demand Baton Corp. DBA, PumpFun Immediately Remove Tokens Deployed On The Solana Blockchain By Pumpfun That Utilize Unlicensed Intellectual Property In An Effort to Impersonate Our Law Firms, And Remove The Likeness Of Any…

— Burwick Law (@BurwickLaw) February 5, 2025

In the formal legal notice, the law firms demanded the immediate removal of specific tokens, including the “Dogshit2 token,” which they claim were created to impersonate them. The firms assert that Pump.fun has the technical capability to remove these tokens but has failed to take action.

This latest development follows two separate class-action lawsuits filed against Pump.fun. The first lawsuit, filed on January 16, 2025, targeted the sale of the Peanut the Squirrel token, which the plaintiffs claim was an unregistered security promoted through influencer marketing.

The second lawsuit, filed on January 30, expanded the scope of allegations and named Pump.fun’s operator, Baton Corporation Ltd, as a defendant. In this case, plaintiff Diego Aguilar reported losses after purchasing tokens like Fwog and Griffain, which saw sharp price drops after initial high valuations.

According to court documents, the platform allegedly extracted nearly $500 million in fees from traders while operating what the plaintiffs describe as a pump-and-dump business model. The lawsuits claim that Pump.fun aggressively marketed meme tokens that later lost much of their value.

The case took an unexpected twist when community members examined Exhibit C of the lawsuit. They discovered that a wallet address mentioned in the firms’ lawsuit against Pump.fun matched the one associated with the DOGSHIT2 token, leading to speculation about the law firms’ involvement in deploying the token.

The law firms argue that Pump.fun’s actions extend beyond intellectual property violations. They claim the platform is participating in broader efforts to intimidate their clients and interfere with ongoing litigation through the creation of meme coins designed to impersonate plaintiffs in the lawsuit.

In their cease and desist letter, the firms warned that any continued unauthorized use of their names or intellectual property could result in immediate legal action. They emphasized their concern about the use of blockchain technologies as a tool for disrupting justice and due process.

The market response to these legal developments has been surprising. Despite the cease and desist letter, the DOGSHIT2 token experienced a 170% price increase in 24 hours, reaching $0.01437 on February 6—a new all-time high for the controversial token.

The pattern of events raises questions about the intersection of intellectual property rights and decentralized finance platforms. The law firms argue that Pump.fun’s ability to remove tokens demonstrates a level of control that makes them responsible for the content on their platform.

As of the latest reports, hundreds of tokens have been created on the platform, including various iterations themed around the legal proceedings and involved parties. These tokens continue to trade on the platform despite the mounting legal pressure.

The legal notices specifically highlight concerns about investor protection, pointing to the platform’s role in enabling what they describe as deceptive market practices. The firms argue that these practices put retail investors at risk of financial losses.

Currently, Pump.fun has not released an official response to either the cease and desist letter or the allegations contained within it. The platform’s silence comes as trading activity continues and new tokens emerge on the platform.