Looks like XRP has some competition since Solana’s SOL was also just charged with being an unregistered security. The crypto-verse is full of surprising twists and turns. The market has seen everything, from lawsuits to outright allegations. Speaking of lawsuits, the SEC vs. Ripple case is still pending, and XRP is still referred to as an “unregistered security.”
Recently, SOL investor Mark Young filed a lawsuit in a federal court in California. Young accuses the network’s creator and management of illegally profiting from SOL in the class-action lawsuit. He continued by saying that SOL was a very centralized cryptocurrency. As a result, this feature has increased profits for the asset’s creators while decreasing investor portfolios.
The filing further stated,
“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.”
Solana Labs, Solana Foundation, CEO Anatoly Yakovenko, Multicoin Capital Management, Kyle Samani, Managing Partner at Multicoin, and trading platform FalconX were all named as defendants in the action.
Roche Freedman LLP is also in charge of the lawsuit. In litigation against Binance.US, the same firm has been defending investors.
Solana’s outages found in the lawsuit
Throughout the year, the SOL network experienced roughly 12 outages. The network was down as a result for several hours. Young based his claim that the network’s disruptions demonstrate its high degree of centralization on the same idea.
In addition, Young pointed out that there were numerous SOL token sales prior to the asset’s public sale. Millions of dollars’ worth of SOL were offloaded, and Multicoin and FalconX were involved.
None of the defendants have made any public pronouncements or expressed their agreement with the action. Investors in Solana, though, remain patient as they watch the case develop.
In addition, SOL was up 2.8% and trading at $37.70 at press time, unaffected by the case.