Solana token Violates Securities Laws And “whales” Inside Manipulate Project Prices
There was a lawsuit alleging that Solana token (SOL) was an unregistered security and retail investors were harmed by the “discharge” of internal Solana cases.
Solana token is accused of being a stock and being “Shilling”
A class-action lawsuit filed in California federal court last week accused major investment funds in the Solana ecosystem of illegally profiting from SOL, and claimed SOL was an unregistered security.
“The cornerstone of the value of SOL securities is the sum of Solana Labs, Solana Foundation, and (Anatoly) Yakovenko’s management and implementation of the Solana blockchain,”The suit alleged
It described Solana token as a highly centralized cryptocurrency that has benefited its insiders to the detriment of retail traders.
Filed by California resident Mark Young, who said he bought SOL in late summer 2021, the suit names Solana Labs, the Solana Foundation, Solana’s Anatoly Yakovenko, crypto VC giant Multicoin Capital, Multicoin’s Kyle Samani and trading desk FalconX.
According to the complaint, Young alleges that the way SOL was created and sold meets the three tenets of the Howey Test, a U.S. Supreme Court precedent commonly used as a barometer for whether the sale of something is a security or not.
“Purchasers who bought SOL securities have invested money or given valuable services to a common enterprise, Solana. These purchasers have a reasonable expectation of profit based upon the efforts of the promoters, 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,”
Not only that, Young also pointed out that Solana had made several agreements to sell SOL with partners before making a public offering to retail investors. Besides, the Multicoin fund has invested a lot in the Solana ecosystem, has “discharged” millions of USD of SOL into the market after “unceasingly” promoting the token despite the technological problems of the Solana blockchain with the support of Solana blockchain OTC trading support from FalconX.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews