Californian files class-action lawsuit against Solana and its partners

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An investor from the United States accused the main companies of the Solana ecosystem of illegally profiting from the sale of the native SOL token.

Mark Young filed a lawsuit in Californialawsuit alleging that SOL is a security. According to Young, who invested in SOL in August 2021, the cryptocurrency meets the three principles of the Howey test (the US Supreme Court's test for determining whether an asset is a security).

A concerned investor believes thatBuyers of the SOL security invested money and financially supported Solana, then they are entitled to profits from the project, which is promoted by promoters such as Solana Labs and the Solana Foundation. According to the plaintiff, the SOL token is capable of competing with bitcoins and ether, and also cannot but be a security. 

In the lawsuit, Young noted the facts of the sale of SOL beforepublic sale of cryptocurrencies. He stated that the company sold “future rights” of approximately 80 million SOL to Multicoin Capital and other large entities. The lawsuit states that Solana Labs filed a Form D with the U.S. Securities and Exchange Commission (SEC). After reviewing the application by the regulator, the sale of SOL was exempt from SEC registration.

Young calls on the court to prosecutefor failure to comply with US securities laws, Solana Labs, Solana Foundation, Multicoin Capital, as well as Anatoly Yakovenko from Solana, Kyle Samani from Multicoin. Multicoin, as a major cryptocurrency venture capital firm, has invested "millions of dollars in SOL" despite technical glitches in the blockchain.

Before Solana had time to report that the error had been fixed,which has brought down the blockchain on several occasions, as it faces a lawsuit filed by law firm Roche Freedman, which recently filed a lawsuit against Binance.US for allegedly misleading investors during the collapse of Terra.