Last week, a group of people filed a lawsuit against key players in the Solana (SOL) ecosystem in federal court in California. The plaintiffs accuse the latter of having illegally profited from SOL – the native token of the blockchain – in order to enrich themselves. The court has not yet ruled on this case.
The content of the complaint against Solana
The group of plaintiffs who filed in federal court in California call the solana (SOL) cryptocurrency a ” highly centralized cryptocurrency which has benefited its initiates to the detriment of small savers”.
Among the plaintiffs is Mark Young, a Californian who says he bought SOL in the summer of 2021. He claims that SOL’s design and sales method meets the 3 principles of the test of Howey :
- A money investment
- In a “normal” company
- With an expectation of profits derived from business management
And that it was therefore an investment contract, in other words a sale of shares.
“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 will rival Bitcoin and Ethereum and become the accepted framework for transactions on the blockchain,” supports Mark Young and his peers.
Other indexed companies
In the joint complaint, the plaintiffs name different companies: Solana Labs, Solana Foundation, Anatoly Yakovenko of Solana, venture capital giant Multicoin Capital, Kyle Samani of Multicoin and FalconX. At present, none of the indexed companies wished to react on the subject.
Pending resolution of the litigation, Solana Labs has filed a Form D with the United States SEC. The form specifies that the company “sold the future rights” to about 80 million SOL.
Several people accuse the key players in the Solana (SOL) ecosystem of having implemented strategies to enrich themselves illegally at the expense of investors who bet on SOL. A complaint was recently filed, but the actors concerned do not yet wish to react to this.
Source: CoinDesk
Receive a digest of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!
Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.
