Solana Labs and key players in the Solana ecosystem were sued in California federal court on July 1.
- The class-action lawsuit was filed in district court for the Northern District of California by Roche Friedman LLP and Schneider Wallace Cottrell Konecki on behalf of state resident plaintiff Mark Young and all investors who purchased SOL tokens since March 24. 2020, through the present.
- The lawsuit accused Solana Labs, the Solana Foundation, Anatoly Yakovenko, leading crypto venture capital firm Multicoin Capital Management, and its CEO Kyle Samani, as well as making illegal profits from trading platform FalconX claiming to be an unregistered security.
“The defendants made substantial profits through the sale of SOL securities to retail investors in the United States in violation of the registration provisions of federal and state securities laws, and investors have suffered substantial losses.”
- Young reportedly purchased an undisclosed amount of SOL in August and September 2021.
- The plaintiffs accused the CEO of Solana Labs, Anatoly Yakovenko, of making deliberately misleading statements regarding the total circulating supply of tokens.
- If SOL is considered a security, Coinbase, Binance and other major crypto exchanges may come under the radar of the regulator for listing similar tokens.
- This could cause many exchanges to eventually remove SOL, a case similar to Ripple when XRP was removed from multiple platforms after the SEC sued the blockchain firm.
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