Burwick Law Firm's PumpFund lawsuit centers on the weak evidence as the key point of contention

Burwick Law('s recent lawsuit against Pump.fun) and parties related to Solana( reveals a gap between legal claims and substantive evidence. Filed on January 14, this case goes beyond a simple platform dispute, focusing on the fairness of the cryptocurrency market.

Grand Allegations, but Lacking Conclusive Evidence

Burwick Law points out that Pump.fun operated as a “manipulated unlicensed gambling business.” The lawsuit portrays it as a “rigged casino,” despite being disguised as a probabilistic game. It presents private messages from the founders as evidence, emphasizing that co-founder Alon Cohen)Alon Cohen( admitted most investors would incur losses.

However, from a legal procedural perspective, there are issues. The lawsuit fails to present definitive proof that Pump.fun systematically manipulated prices, nor does it demonstrate that the management directly profited from such activities. This significantly weakens the strength of the allegations.

Issues of Platform Structural Unfairness

A key claim emerging from the lawsuit concerns the lack of technical safeguards on the platform. It criticizes the absence of fair mechanisms such as random entry periods to prevent bots and insiders from gaining priority positions.

The lawsuit alleges that anonymous KOLs profited financially from promoting Meme Coin)Meme Coin( without disclosure, claiming they received pre-knowledge of token purchases before promotion began. However, due to weak evidence, this remains a point of contention.

Solana Connection, Industry Skepticism

The lawsuit argues that Solana’s technological features enabled the expansion of meme coin trading volume. It highlights Solana’s high network speed, priority fee system, and the network congestion mitigation update scheduled for March 2024 as key factors.

Nevertheless, external evaluations are lukewarm. The industry generally considers the connection between Solana and Pump.fun to be weak. In other words, the technical characteristics of Solana alone are insufficient to substantiate allegations of price manipulation. There are also legal interpretative challenges regarding whether the responsibility for technical infrastructure provision and platform operation should be viewed equally.

While this lawsuit raises important questions about transparency in the Pump.fun and meme coin markets, the evidence needed to determine legal victory remains weak.