Two prominent law firms, Burwick Law and Wolf Popper LLP, have accused Pump.fun of utilizing their intellectual property to create a controversial meme coin named DOGSHIT2. The firms have also alleged that Pump.fun attempted to intimidate their clients.
These accusations have emerged as both firms are actively pursuing a class-action lawsuit against Pump.fun, asserting that the platform has enabled widespread securities fraud. Additionally, they have criticized the launchpad for facilitating the creation and exchange of unregistered tokens with ease.
The DOGSHIT2 token has experienced a surge in popularity amidst Pump.fun's legal troubles. A cease-and-desist letter, dated February 5, 2025, was publicly shared on X (Twitter), where Burwick Law and Wolf Popper LLP demanded the immediate removal of DOGSHIT2 and other tokens that allegedly misrepresented the firms and their personnel.
The dispute surrounding DOGSHIT2 intensified when court documents from Burwick Law's initial lawsuit against Pump.fun revealed how users could easily generate tokens on the platform. Speculation arose when a wallet address cited in the lawsuit was associated with DOGSHIT2, prompting questions about the token's origins.
While Burwick Law fervently refutes any involvement in the creation or profiting from DOGSHIT2, the token's market capitalization reached over $23 million at its peak. Despite a subsequent decrease to approximately $8.2 million, the price surged by more than 200% since the start of Thursday's trading session.
The key contention in the legal battle revolves around whether Pump.fun knowingly permitted the creation of tokens that mimicked law firms and plaintiffs entangled in the lawsuit. The law firms maintain that Pump.fun possesses the technical means to eliminate the contentious tokens but has chosen not to do so.
These legal developments have highlighted the heightened regulatory scrutiny over meme coin platforms, particularly concerning high-risk pump-and-dump schemes. While Pump.fun has faced criticism and controversies, including delays in the altcoin season, it remains a significant player in the crypto space.
The ongoing legal saga between Pump.fun and the law firms underscores the complexities and challenges within the blockchain industry, emphasizing the importance of regulatory compliance and transparency in token creation and trading.