Solana Labs, the company behind the Solana (SOL) blockchain is the subject of a new class-action lawsuit filed in California.
The action says that SOL is an unregistered security and accuses the firm, along with a number of associated people and companies engaged within the ecosystem, of illegally profiting off the blockchain’s native coin.
According to the lawsuit filed by California resident Mark Young, “Defendants made enormous 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 enormous losses.”
Young asserts that he purchased an unspecified quantity of SOL in August and September of 2021.
During the class period beginning on March 24, 2020, the defendants, including the CEO of Solana Labs, Anatoly Yakovenko, allegedly made false and deceptive assertions about the overall circulating quantity of SOL.
“According to court records, SOL securities achieved a high price of USD 258 per token and a market value of more than USD 77bn on November 5, 2021, as a consequence of these promotional operations. These promotional activities elevated SOL securities from a relatively minor crypto asset to one of the world’s leading crypto assets. The plaintiff seeks damages and a declaration that SOL is a security, and asks for a jury trial in California.
At 11:21 UTC, the ninth-ranked cryptocurrency by market capitalization on CoinGecko, SOL, is trading at USD 37 and is up 3% on the day. SOL is down about 13% in the last month and up 8% in the past year. It is also 86 percent lower than its all-time high of about USD 260, which was attained in November 2021.
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