Binance Faces Legal Action Over PNUT Memecoin

Crypto exchange Binance is under fire after receiving a cease and desist letter from Mark Longo, owner of the internet-famous Peanut the Squirrel, for alleged copyright infringement. Following the news, the Solana-based memecoin PNUT saw a sharp decline, falling 10.2% to hit $1.05, its lowest support level in over a month.

Longo, known as “Peanut’s Dad” online, accused Binance of using his intellectual property without authorization. In a post on X, he shared details of the legal action, stating this was the first of multiple cease and desist letters targeting entities profiting from his pet’s likeness.

The Story Behind Peanut the Squirrel

Peanut the Squirrel gained viral fame after Longo’s rescue videos captivated audiences, garnering over half a million Instagram followers. However, tragedy struck when Peanut and another rescued animal, Fred the Raccoon, were seized by authorities and euthanized to test for rabies. The public outrage over Peanut’s death sparked widespread condemnation, including criticism from lawmakers.

The controversy birthed the PNUT memecoin, which quickly gained traction, reaching a $120 million market cap in its first week.

PNUT’s Meteoric Rise and Binance’s Role

Binance announced the listing of PNUT on November 11, triggering a price rally that propelled the memecoin to a $2.27 billion market cap before retracing. Over the past month, PNUT has held steady above $1 billion, trading between $1.80 and $1.00.

However, Longo’s cease and desist letter alleges that Binance infringed on “various copyrights and trademarks” tied to Peanut’s image and branding. Specifically, his legal team cited Binance’s use of a copyrighted photograph of Peanut wearing a cowboy hat and the “identical” trademark of “PEANUT THE SQUIRREL” in the memecoin’s branding.

The letter demands Binance respond by December 31, 2024, verifying it has ceased all infringing activities.

Market Reaction and Controversy

The legal action sent PNUT’s price tumbling:

• 10.2% drop in 24 hours, from $1.17 to $1.05.
• The decline raises investor concerns as PNUT approaches its lowest levels in over a month.

Longo has previously voiced his dissatisfaction with PNUT, accusing the crypto community of profiting from Peanut’s image. In response, he launched Justice for Pnut and Fred (JUSTICE), a protest memecoin that later faced insider trading allegations.

In his warning post, Longo also promoted another memecoin, Justice for Peanut (JFP), which saw a 159% surge following his announcement before losing its gains.

Current PNUT Status

At the time of writing, PNUT is trading at $1.10, marking a 5.1% decline in the daily timeframe, as uncertainty surrounding the legal developments weighs on the token’s performance.

The cease and desist letter from Mark Longo highlights the growing intersection of intellectual property law and memecoins, as viral internet culture continues to influence the cryptocurrency market. With Binance now facing allegations of copyright infringement, the case could set a precedent for how platforms navigate meme-inspired tokens moving forward.