A US investor accused the main companies of the Solana ecosystem of illegally profiting from the sale of the native SOL token.
Mark Young has filed a lawsuit in a California court alleging that SOL is a security. According to Yang, who invested in SOL in August 2021, the cryptocurrency meets the three principles of the Howey test (a US Supreme Court test to determine whether an asset is a security).
The worried investor believes that since the buyers of the SOL security have invested and financially supported Solana, they are entitled to profit from the project, which promoters such as Solana Labs and the Solana Foundation. According to the plaintiff, the SOL token is able to compete with bitcoins and ether, and cannot but be a security.
In the lawsuit, Young noted the facts of the sale of SOL before the public sale of cryptocurrencies. He stated that the company sold “future rights” for about 80 million SOL to Multicoin Capital and other large legal entities. The lawsuit states that Solana Labs filed Form D with the U.S. Securities and Exchange Commission (SEC). After the application was considered by the regulator, the sale of SOL was exempted from registration by the SEC.
Yang urges the court to prosecute Solana Labs, Solana Foundation, Multicoin Capital, Solana’s Anatoly Yakovenko, and Multicoin’s Kyle Samani for non-compliance with US securities laws. Multicoin, as a major cryptocurrency venture company, has invested “millions of dollars in SOL” despite technical failures in the blockchain.
No sooner had Solana announced that it had fixed a bug that had already brought the blockchain to a halt several times before it ran into a lawsuit prepared by Roche Freedman, a law firm that recently filed a lawsuit against Binance.US for allegedly misleading investors during the collapse of Terra.
Source: Bits
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