- Misleading SOL’s circulating supply has been alleged by Young.
- According to the primary plaintiff, Mark Young, SOL tokens are unregistered securities.
A class-action lawsuit has been filed against Solana Labs, the non-profit corporation behind the Solana blockchain. According to California resident Mark Young, the action names Solana Labs, the Solana Foundation, Solana’s Anatoly Yakovenko, crypto VC behemoth Multicoin Capital, and trading platform FalconX.
According to the primary plaintiff, Mark Young, SOL tokens are unregistered securities. If proven, this might have a huge impact on the cryptocurrency sector. Defendants spent a large amount of money advertising SOL securities, according to the court filings. The defendant hoped to benefit from the Solana Foundation’s marketing activities by investing in Solana.
Multiple Allegations by Mark Young
The SOL token passes the Howey test because Solana’s ability to execute its commitment to build the network was critical to the project’s viability and potential profits. By promoting the token on many online venues, the defendants accused in action “personally profited,” according to the complaint. According to Young, they have made “enormous” profits thanks to cryptocurrency.
“Deliberately misleading” remarks concerning SOL’s circulating supply have been alleged by Young. Despite the defendants’ public statements, the plaintiff contends that the blockchain is not decentralized.
Courts should pay Young and the other class members damages “in an amount to be proved at trial,” according to Young’s request in his lawsuit. A year after ranking as one of the best-performing tokens in the year 2021, SOL has now fallen by almost 85% from its all-time high of $259 in value.
SOL was developed and sold in accordance with the three elements of the US Supreme Court rule, known as the Howey Test, that determines whether or not a transaction is a security, according to Young’s claim in the case.
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