Solana Foundation Sued for Allegedly Profiting Illegally & Violating Securities Laws
An investor has filed a lawsuit in California claiming that the major players in the ecosystem for Solana’s blockchain have been exploiting and profiting from the company’s native token SOL.
In the lawsuit, Mark Young alleges that Solana Labs and its Foundation, as well as Multicoin Capital Investment Group and its co-founder Kyle Samani, all, violated federal securities laws.
A California district court filed a class-action lawsuit against the defendants for selling Solana as securities. They are promoting these securities without any registration statement.
Many crypto companies facing these violations are faced with those same violations as well.
The law firm filed a lawsuit on behalf of the man on Jul. 1. Because he has incurred losses, Young feels compelled to file a lawsuit.
The allegations in the lawsuit are that SOL is a centralized cryptocurrency which the defendants benefitted from while retail investors lost their capital. None of the defendants disagreed with the lawsuit.
The securities lawsuit alleges that the token has passed the Howey Test, which is a measure to see if something is a security.
“People who have bought SOL securities have invested in a promising venture. They have a reasonable expectation of profit based upon the efforts of Solana Labs and the Solana Foundation to build a blockchain network.”
