Cryptocurrency giant Binance has come under fire from Mark Longo, the creator of the Peanut the Squirrel brand, over allegations of intellectual property (IP) theft.
Longo has issued a cease-and-desist letter accusing Binance of unauthorized use of his trademark and mascot likeness to promote the PNUT token, a memecoin that has gained significant traction in the crypto market.
Allegations of Trademark Infringement
According to Longo, Binance used the terms āPEANUT THE SQUIRRELā and āPNUT,ā along with a copyrighted image of Peanut wearing a cowboy hat, without permission. Longo, who has operated under the PNUT brand since 2017 for educational and animal welfare initiatives, argues that Binanceās actions create consumer confusion and falsely suggest his endorsement of the memecoin.
Longoās legal team claimed infringement of the United States Copyright Act in their cease-and-desist letter, demanding that Binance immediately stop utilizing the logos and artwork. The letter also warned of potential sanctions of up to $150,000 per infraction if the crypto exchange does not comply by December 31.
The Background of the PNUT Token
The PNUT token went live in November 2024 and quickly garnered popularity with the viral controversy over the New York Department of Environmental Conservationās shooting of Peanut the squirrel. Celebrities like Elon Musk and President-elect Donald Trump joined the widespread public outcry that followed the move.
As the storyās popularity increased, the memecoinās market value also increased, reaching a peak of over $1 billion. Despite this success, Longo alleges that the PNUT tokenās creators exploited his story for financial gain.
Legal and Ethical Implications
The dispute highlights broader issues in the crypto world, where the rapid rise of memecoins often blurs legal boundaries. Longoās case could set a significant precedent for intellectual property rights in this space.
According to lawyers, the case underscores how much more detailed guidance is needed in cases of copyright and trademark infringement in decentralized environments. Binance, which has not yet commented publicly, is now under increasing pressure to address the claims.Longo has made his intentions clear, stating on X, āUnauthorized IP use will not be tolerated. We will get justice.ā
A Divisive Response
While Longo has received support for his legal stance, some critics have accused him of leveraging the controversy for personal gain. He recently launched his own token, JUSTICE, on the Solana blockchain, claiming it as the only legitimate tribute to Peanut. However, the JUSTICE token has struggled in the market, with its value plummeting amid questions about Longoās motivations.
Adding fuel to the controversy, Longo accused the PNUT token community of raising $50,000 in his name but misappropriating the funds. In a now-deleted post, he stated, āThe $PNUT community used my story, my squirrel, and my likeness to make millions!ā
The Bigger Picture
Memecoins are a double-edged sword that has risen in the crypto industry. While it drives attention and new entrants, it also serves as an open door to intellectual property theft, scams, and moral or ethical issues.
Longoās battle with Binance could force the industry to confront these challenges head-on, potentially reshaping the regulatory landscape. Whether Longoās legal efforts will yield a resolution remains to be seen, but his case serves as a critical test of intellectual property protections in the fast-evolving world of cryptocurrency.
