The crypto space is full of unexpected turns. Lawsuits, unexpected price movements, bankruptcies… The market witnessed everything. For example, XRP continues to grapple with the label of “non-registered securities” while the SEC and Ripple litigation continues. It seems that a friend has come to XRP in this respect. Popular altcoin Solana (SOL) has been accused of being a security. Here are the details…
Altcoin SOL also accused of being a security
SOL investor Mark Young recently filed a lawsuit in California federal court. In the class action lawsuit, Young accuses the founder and administrators of the network of illegally exploiting SOL. He also continued to accuse SOL of being a comprehensively decentralized cryptocurrency. This has benefited the makers of the asset, while reducing the portfolios of investors. The following statements were included in the case document:
Buyers who have purchased SOL securities have invested money or rendered valuable services to Solana, a joint venture. Buyers; It has a reasonable expectation of profit based on the efforts of Solana Labs and the Solana Foundation to build a Blockchain network that will rival Bitcoin and Ethereum and become the accepted framework for transactions on the Blockchain.
All the defendants named in the lawsuit were Solana Labs, the Solana Foundation, Solana CEO Anatoly Yakovenko, Multicoin Capital Management, Multicoin Managing Partner Kyle Samani, and FalconX trading platform. In addition, the case is overseen by Roche Freedman LLP. The same firm represents investors in a lawsuit against Binance.US.
The lawsuit highlights outages in the Solana network
As we reported as Kriptokoin.com, the Solana network experienced about 12 outages during the year. This resulted in the network being down for hours. Likewise, Young claimed that the outages show that the network is highly centralized. In addition, Young noted that there were numerous SOL token sales prior to the asset’s public sale. Apart from that, Multicoin and FalconX were accused of selling millions of dollars of SOL.
The lawsuit said Multicoin, a major crypto venture capital firm that has invested heavily in the Solana ecosystem, has “sold millions of dollars” of SOL to individual investors after it “brutally” promoted the token despite technical problems with the Solana Blockchain. The lawsuit said that this alleged sale went through the FalconX OTC desks. Young’s law firm, Roche Freedman, also recently sued Binance.US for allegedly misleading investors during the Terra boom.
None of the defendants made a statement. He also did not accept the case publicly. However, Solana investors await the course of the case. Additionally, SOL, unaffected by the lawsuit, rose 1.74 percent. It is currently trading at $36.70.
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