Key Takeaways
Burwick Law, the firm behind the Pump.fun cases, filed a class action over Magic Eden's $ME token in New York federal court.
The suit accuses parent company Euclid Labs and four founders of promoting $ME with utility promises that were delayed or abandoned.
It pleads no securities claims, relying instead on New York consumer-protection law, negligent misrepresentation, and unjust enrichment.
Magic Eden is facing a class action lawsuit over its $ME token, filed by Burwick Law, the same firm that brought the high-profile cases against memecoin platform Pump.fun.
The complaint, filed June 16 in the U.S. District Court for the Eastern District of New York, names Magic Eden's corporate parent Euclid Labs, the ME Foundation, and four co-founders, including chief executive Jack Lu. Three named buyers say the company promoted $ME with assurances that the token would carry real use across an expanding digital-asset platform, and that many of those features either arrived late or never arrived at all.
The multi-chain promise
Central to the case is Magic Eden's pitch that $ME would power a marketplace spanning multiple blockchains. Plaintiffs say that promise unraveled in February 2026, when the company announced it would refocus on Solana and wind down its Bitcoin and Ethereum marketplace operations. Euclid Labs raised about $157 million from investors including Paradigm, Sequoia, and Greylock at a $1.6 billion valuation, and the suit argues buyers paid for utility the company did not deliver.
Notably, the lawsuit pleads no securities claims. Instead it leans on New York consumer-protection statutes covering deceptive practices and false advertising, plus negligent misrepresentation and unjust enrichment, a route that sidesteps the question of whether $ME is a security. It is the latest in a wave of investor actions testing how token promises hold up in court, from the racketeering case against Pump.fun's parent to the Voyager investors' appeal over Mark Cuban's endorsement. The pattern here is hard to ignore.
People Also Ask
Who filed the Magic Eden lawsuit?
Burwick Law filed the class action on behalf of three named $ME buyers. It is the same firm known for its cases against Pump.fun's parent company.
What does the $ME token lawsuit allege?
It alleges Magic Eden and its founders promoted $ME with promised features and multi-chain utility that were delayed or abandoned after the company refocused on Solana.
Does the suit claim $ME is a security?
No. It pleads New York consumer-protection claims, negligent misrepresentation, and unjust enrichment rather than federal securities violations.
What are the plaintiffs seeking?
They seek damages and restitution for people nationwide who bought $ME tokens during the relevant period.