New Class Action Lawsuit Against Solana for Selling Unregistered Security

A Solana investor has filed a class-action lawsuit against key parties in the Solana ecosystem for allegedly selling unregistered securities tokens in the form of SOL tokens. The lawsuit was filed on behalf of investors who purchased Solana tokens between March 24, 2020, and the filing date. Solana Ecosystem Sued for Securities Violations The plaintiff, Mark Young, filed the suit on July 1 against Solana Labs, Solana Foundation, Solana CEO Anatoly Yakovenko, crypto investment firm Multicoin Capital and its co-founder Kyle Samani, as well as trading platform FalconX. “Defendants made enormous profits through the sale of solana (SOL) securities to retail investors in the United States, in violation of the registration provisions of federal and state securities laws, and the investors have suffered enormous losses,” the lawsuit read. The plaintiffs also highlighted Solana’s claims of being decentralized. “As of May 2021, insiders held 48% of the SOL supply. The network is thus highly centralized,” SOL Allegedly Spent A Lot on Promotions The defendant also allegedly spent a huge amount of money to promote SOL in the United States since April 2020, which supposedly boosted its price to $258 per token and market value to $77 billion as of November 5, 2021. “These promotional efforts took SOL securities from a relatively obscure crypto-asset to one of the top crypto-assets in the world,” Young wrote. So far, Solana’s SOL token has be...