Pump.fun Launches $3M Investment Arm Amid Legal Battle

Memecoin launchpad Pump.fun has unveiled a new investment arm called Pump Fund, committing $3 million to support early-stage startups through a unique public hackathon initiative. The announcement arrives as the platform faces serious legal challenges from crypto law firm Burwick Law.

The Build in Public Hackathon will distribute funding across 12 selected projects. Each winner receives $250,000 at a $10 million valuation. Winners also gain mentorship from Pump.fun’s founding team.

Introducing the $3,000,000 Build in Public Hackathon

Brought to you by Pump Fund – pump fun’s New Investment Arm

It’s time to completely reimagine how early-stage projects are built and funded.

Learn more 👇 pic.twitter.com/l1TJcxv1J0

— Pump.fun (@Pumpfun) January 19, 2026

Pump.fun’s announcement on X garnered over 1.1 million views within hours of posting. The platform described the initiative as a complete reimagining of how early-stage projects are built and funded.

Pump.fun Introduces New Model for Startup Funding

The hackathon introduces a market-driven approach to project selection. Unlike traditional funding rounds requiring approval from judges or venture capitalists, tokenization allows users to become the decision-makers.

Participants must launch a token, build a project, and retain at least 10% of the token’s supply. Building in public through X posts, community formation, and streaming on Pump.fun is highly encouraged.

Applications remain open until February 18, 2026. First winners will be announced by day 30 of the hackathon. Projects of all maturities and verticals are welcome to apply.

The platform stated that organic traction will outweigh connections and promotional content. Teams demonstrating quick shipping and open communication about their plans will receive priority consideration.

Pump Fund aims to align itself with projects long-term, advancing the broader startup ecosystem on the platform. The initiative does not require participants to build crypto-related projects specifically.

Legal Storm Clouds Gather

Meanwhile, Pump.fun faces mounting legal pressure from Burwick Law. The crypto-focused legal firm has asked a judge to impose sanctions on the platform over alleged harassment and intimidation tactics.

Burwick Law claims Pump.fun orchestrated a “memetic marketing campaign” designed to amplify harassment against the firm. The complaint alleges the platform and its affiliates used its token system to pressure the firm outside the courtroom.

Among the specific allegations, Burwick Law points to an X account named @onchainrapist. The account, which displays a Pump.fun badge, allegedly posted multiple “sexual-violence-based” messages targeting firm head Max Burwick.

84 floors up pic.twitter.com/t1a6s963C5

— Max Burwick (@burwick_max) January 14, 2026

The legal filing cites whistleblower reports claiming Pump.fun CEO Alon Cohen personally handles marketing and affiliate operations. Burwick Law argues this places the alleged intimidation directly under systems Cohen oversees.

Additional claims describe individuals visiting what they believed to be the firm’s offices. Some allegedly appeared in Max Burwick’s home neighborhood in what the firm characterizes as communications designed to convey surveillance and access.

Burwick Law has outlined specific sanctions it wants the court to impose. The firm requests permanent removal and disabling of any tokens associated with plaintiffs, their legal counsel, and family members.

The requested orders would forbid Pump.fun staff and affiliates from allowing tokens incorporating protected persons. The firm also seeks to stop the platform from posting threatening or intimidating content on any social media platform.

Perhaps most significantly, Burwick Law wants the court to assign a compliance officer. This officer would ensure Pump.fun and its affiliates comply with all imposed restrictions.

The sanctions request covers a broad scope of individuals. Protected persons would include plaintiffs, plaintiffs’ counsel, counsel’s family members, and plaintiffs’ law firms.

The timing of Pump.fun’s investment arm launch against this legal backdrop creates a stark contrast. On one hand, the platform promotes innovation and startup support. On the other, it defends against serious misconduct allegations.

Court proceedings will determine whether Burwick Law’s allegations hold merit. For now, Pump.fun continues expanding its ecosystem while the legal battle unfolds in parallel.