Burwick law founder blasts Pump.fun for exploitation, lawsuit looms

Max Burwick has called Pump.fun “the evolution of MLM scams,” accusing it of exploiting investors—and now his law firm is preparing a lawsuit.

On Jan. 15, Max Burwick—founder and Partner at Burwick Law—voiced strong criticism against platforms like Pump.fun as examples of what he calls “the ultimate evolution of multi-level marketing scams, preying on human desperation and the digital attention economy.” 

He critiqued that these projects leverage the “digital attention economy” to reel people in—especially younger audiences or those facing economic hardship—and ensnare them in a cycle designed to enrich early insiders.

Pump.fun, according to Burwick, allegedly frames “exit liquidity” as a game—making light of the very real financial losses inflicted on late entrants.

Pump.fun is a decentralized platform on the Solana ( SOL ) blockchain that simplifies the process of creating and trading meme coins, aiming to make participation in the crypto market accessible to non-technical users.

Burwick didn’t hold back in taking shots at the platform, saying they were the antithesis of blockchain innovation. He says platforms like Pump.fun don’t embody the fundamental principles of transparency, fairness, and empowerment that crypto was originally built on.

Burwick reiterated that meme coins aren’t innovative in and of themselves but prey on addiction and youth. His comments come as Burwick Law picks up the gauntlet in a legal case involving Pump.fun, demanding accountability in company conduct within the crypto ecosystem. 

Pump.fun faces legal action

On Jan. 15, Burwick Law said that it has been working with individuals who lost considerable amounts of money to meme coins via rug pulls and misleading promises linked to the platform. The law firm has now made a website to help clients who lost millions of dollars in the fiasco. 

Burwick Law claimed Pump.fun hosted obscene and corrosive content displaying violence, racism, and antisocial behaviors. They attacked the anonymous creators of the platform and others in the meme coin ecosystem for luring day-to-day investors with false promises.

As of Jan. 15, the platform’s total revenue surpassed $422 million, with nearly $25 million generated in the last seven days alone, according to Dune Analytics.

Burwick Law contends that the meme coin launchpad offers little actual support for its users and instead facilitates rug pulls, where developers walk away with investor funds after raising capital. “As the system grows, early adopters cash out by dumping their holdings on later participants, effectively stealing from them,” Burwick remarked.

In November 2024, the platform suffered major backlash due to its live streaming feature. A user threatened to harm himself to promote their meme coin during a live broadcast, causing panic in the entire crypto community. While Pump.fun did acknowledge the damage done and changed its moderation policies, there were no talks about losses that investors suffered.

According to an analysis by Pump.fun wallet examiner Adam Tehc, only 0.4% of the 14 million wallets interacting with Pump.fun reported profits exceeding $10,000—highlighting the extent to which most users have suffered losses.

Max Burwick is not the only one who has a strong stance against the platform. On Jan. 15, Cosmo Jiang of Pantera Capital told Wire “that majority of meme coins launched through Pump.fun wind up nearly worthless”, sharing a sentiment similar to Burwick.