Burwick Law is seeking potential claimants as it prepares to launch legal action against Believe, a crypto firm and app that was allegedly used to scam retail buyers.
The Believe app is part of the so-called “Internet Capital Markets” trend, which allows anybody to raise capital by tokenizing ideas, products, or communities.
Believe lets users launch tokens and link them to a project simply by tagging its affiliate X account, “@launchcoin.”
However, despite this apparently simple premise, Burwick Law argues, “So-called ‘Internet capital markets’ promise frictionless token launches, yet many offerings arrive with minimal disclosures and little regard for consumer protection.”
Read more: Burwick Law founder likely behind Pump Fun memecoin, report
It said, “On platforms like Believe, anyone can spin up a coin in seconds and market it as ‘utility’ or ‘ownership’ without real transparency about who controls liquidity, fees, or treasury wallets.”
Burwick Law claims this whole concept of “decentralizing access to capital” that’s been utilized by Believe “is co-opted by sophisticated actors scamming retail buyers.”
One way Believe is trying to cover its back is through its legal disclaimer that states users should not market tokens as digital merchandise, company equity, ownership, an investment, or a source of financial returns.
It also offers token creators a 50/50 split of fees, with Believe receiving the other half.
The law firm is actively pursuing various lawsuits in the crypto industry and claims to represent over 3,800 clients that have over $10 billion in crypto-loss claims.
Among the memecoin space’s big names currently in Burwick’s sights are launchpad Pump Fun, and the individuals behind the Haliey Welch-inspired “HAWK” token.
Protos has reached out to Burwick Law for comment and will update this piece should we hear anything back.
