The crypto verse is riddled with twists and turns. From lawsuits to blatant allegations, the market has been through it all. Speaking of lawsuits, XRP continues to deal with the “unregistered security” label as the SEC Vs Ripple case continues to exist. Resembling XRP has some company, as Solana’s SOL was also recently charged with unregistered security.
SOL investor Mark Young recently filed a lawsuit in California federal court. In the class-action case, Young accuses the network’s founder and executives of illegally taking advantage of SOL. He further accused SOL of being an extensively centralized cryptocurrency. This aspect, in turn, has benefited the makers of the asset, while cutting investor portfolios.
Continue the filling read†
“Buyers who have purchased SOL securities have invested money or provided valuable services to a joint venture, Solana. These buyers have a reasonable expectation of profit based on the efforts of the promoters, Solana Labs and the Solana Foundation, to build a blockchain network that rivals Bitcoin and Ethereum and becomes the accepted framework for transactions on the blockchain. ”
All the defendants named in the lawsuit were Solana Labs, Solana Foundation, Anatoly Yakovenko, the CEO of Solana, Multicoin Capital Management, Kyle Samani Managing Partner at Multicoin and trading platform FalconX.
In addition, the case is overseen by Roche Freedman LLP. The same company is representing investors in a case against Binance.US.
Solana’s power outages highlighted in lawsuit
The Solana network had about 12 outages throughout the year. As a result, the network was down for hours. At the same banking, Young claimed that the network’s outage shows that it is highly centralized.
In addition, Young also noted that there was a plethora of sales of the SOL token prior to the public sale of the asset. Multicoin and FalconX were dragged in to clear and execute the multimillion-dollar redemption of SOL.
None of the defendants made statements or publicly acknowledged the lawsuit. Solana investors, however, are sitting still and waiting for the case to unfold.
In addition, unfazed by the lawsuit, SOL rose 1.74 percent and traded at $36.70 at the time of writing.