Cryptocurrency exchange Binance is under fire after Mark Longo, the owner of Peanut the Squirrel, accused the platform of using his pet’s likeness and trademark without permission to promote the PNUT-themed memecoin.
Longo, who has been using the Peanut the Squirrel brand for educational and animal welfare initiatives since 2017, issued a cease-and-desist letter demanding that Binance immediately stop its alleged unauthorized use of his intellectual property (IP).
The complaint alleges that Binance has violated U.S. trademark and copyright laws by leveraging Peanut’s branding to drive interest in the Solana-based PNUT memecoin.
If Binance does not comply by December 31, Longo could pursue legal action, including potential penalties of up to $150,000 per infringement.
The Allegations: Unauthorized Use of Peanut’s Likeness
Longo’s legal team claims that Binance’s infringement includes:
Unauthorized use of the terms “Peanut the Squirrel” and “PNUT.”
A specific copyrighted image of Peanut the Squirrel in PNUT’s branding.
Marketing strategies that allegedly mislead investors into believing Longo endorsed the token.
The cease-and-desist letter states that Binance’s actions violate the United States Copyright Act and create consumer confusion, falsely implying a connection between Longo and the PNUT cryptocurrency.
PNUT’s Meteoric Rise and Market Impact
The legal dispute comes amid PNUT’s explosive growth in the crypto market.
The memecoin’s value surged to a staggering $2.25 billion market capitalization on November 14 following a viral event linked to Peanut the Squirrel.
Two Peanut-themed tokens ranked among DexScreener’s top 10 tokens in 24-hour trading volume.
Major exchanges, including Coinbase and Kraken, are reportedly considering listing PNUT.
The sudden popularity of PNUT was largely fueled by the controversy surrounding Peanut the Squirrel’s tragic confiscation by New York authorities, which sparked widespread social media outrage. Elon Musk even commented on the case, further propelling the memecoin’s visibility.
Legal Experts Weigh In: A Landmark Case for Crypto IP Rights?
Legal analysts suggest this case could set a precedent for intellectual property rights in the cryptocurrency space, where memecoins frequently borrow branding from pop culture and viral internet phenomena.
If Longo’s claims hold up in court, it could reshape how memecoins are marketed and developed, forcing crypto projects to secure explicit licensing agreements for recognizable figures.
Binance’s silence on the matter has left investors uncertain about PNUT’s future and potential legal risks for holders.
With Binance already under regulatory scrutiny worldwide, another high-profile lawsuit could further damage its reputation.
What’s Next? Could Binance Face Legal Action?
The cease-and-desist letter demands a response by December 31. If Binance fails to comply, Longo may seek:
Injunctive relief to block Binance from using Peanut the Squirrel’s branding.
Financial damages, including compensation for alleged infringement.
Legal fees coverage if the case goes to trial.
With PNUT’s future hanging in the balance, the outcome of this dispute could significantly impact both Binance’s standing in the crypto industry and the broader discussion around intellectual property rights in the memecoin market.