Binance accused of IP theft over PNUT token by Peanut the Squirrel owner

Mark Longo, owner of the Peanut the Squirrel brand, has issued a cease-and-desist letter to cryptocurrency exchange Binance, accusing the platform of trademark infringement in relation to its PNUT-themed memecoin.

In a filing shared on X by Longo, the owner claims Binance unlawfully used his “Peanut the Squirrel” trademark and mascot likeness to promote the PNUT crypto coin without authorization. According to the complaint from his legal team, Longo has operated under the PNUT brand since 2017, focusing on educational outreach and animal welfare.

The cease-and-desist letter demands that Binance immediately halt all use of the PNUT marks and mascot imagery. If the exchange does not comply, Longo’s attorneys will reportedly push for it to pay fines of up to $150,000 per infringement.

The PNUT token initially gained traction after being listed on Binance but has since seen fluctuating performance. At press time, per CoinMarketCap data, PNUT’s price has declined by about 9% from its value 24 hours ago and about 19% in the last 30 days.

Longo disputes PNUT token branding

Longo’s legal team alleges that Binance used the terms “PEANUT THE SQUIRREL” and “PNUT,” as well as a copyrighted image of Longo’s squirrel mascot, without permission. The branding associated with the PNUT memecoin reportedly mimics Longo’s mascot, creating confusion among consumers and falsely suggesting Longo’s endorsement.

The PNUT token launched in early November, gaining rapid popularity amid a controversial backstory. The memecoin draws inspiration from a pet squirrel named Peanut, who became the center of public outrage after being euthanized by the Department of Environmental Conservation (DEC) during a rabies-testing operation. 

Binance has not yet publicly responded to the allegations outlined in Longo’s cease-and-desist letter.

Peanut had reportedly lived indoors for years and exhibited no signs of the disease, leading critics, including Elon Musk and President-elect Trump, to denounce the incident as unnecessary.

The uproar surrounding Peanut’s death quickly garnered massive attention online, with Musk provocatively commenting that “Donald Trump would save the squirrels.” The controversy, coupled with the token’s viral appeal, spurred significant interest in PNUT. Early adopters of the token saw meteoric gains as the coin’s price surged during its initial market bull run.

Battle with the crypto community

Despite its success, Longo has accused the PNUT community of exploiting his story for financial gain. In a now-deleted post on X (formerly Twitter), Longo stated, “The $PNUT community USED MY STORY, MY SQUIRREL, AND MY LIKENESS TO MAKE MILLIONS!”

He also claimed the PNUT community raised $50,000 in donations on his behalf but misappropriated the funds. Furthermore, he says he received no substantial support despite the token’s financial success.

It’s insane!

He asks insane amounts of money to people, and Mark if you are reading this, do not deny please because that will just make it ugly!

The community token @OGpeanut_sol gave you money, as a support donation to the cause of Peanut! You think you can just do this and…

— Dennis ‘The Crypto Lion King’ (@TheL1onK1ngCryp) November 25, 2024

In response to the controversy, Longo launched his own token, JUSTICE, on the Solana blockchain. He described JUSTICE as the only legitimate tribute to Peanut and another squirrel named Fred, aiming to reclaim his story.

A few weeks after JUSTICE was launched, news surfaced about insider trading, and analysts raised concerns about a potential 80% of its supply being controlled by “insiders.” 

As seen in several replies to the cease and desist filing post on X, the community threatened to sue Lango for the “farms and rugs.” he’s supposedly involved in, citing memecoins such as Justice for Peanut, a token that performed rather poorly since its inception.

Should I sue you too, you shameless liar? The FBI should shoot you dead and let you go to heaven with your squirrels. pic.twitter.com/SgfZw7ogzw

— 六子 | 搞笑小猫.sol🦄🀄 (@0x_CryptoFury) December 16, 2024

One user explained how PNUT came into the market to “bring attention” to Lango’s cause, and without it, not many would have been aware of his story. 

Community-driven memecoin tokens thrive on viral stories, memes, or cultural references to attract widespread attention and investor enthusiasm. They typically rely on decentralized networks, with branding and marketing often shaped by the community rather than a centralized authority. 

Longo’s lawsuit could be dismissed if the PNUT token’s creators argue that their branding constitutes fair use or parody, common defenses in the memecoin space. Additionally, due to the decentralized nature of the token, Binance may argue that it merely facilitated the trading of the asset rather than creating or endorsing it.

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