Solana has been sued in the US due to illegal profits from SOL
The claim - illegal profits from SOL, and the plaintiff in this lawsuit is Californian investor Mark Young. He will be represented in court by Roche Freedman, a firm that specializes in jurisprudence.
According to him, the problem is that the token’s value directly depends on the sum of efforts of Solana Labs, Solana Foundation, and Anatoly Yakovenko at the point of managing the implementation of the platform’s blockchain. He also requires recognizing the token as a security.
They are the ones who have created this network, and they are the ones who have created all the tokens that circulate in it, and they are the ones who decide who will get SOL securities and under what conditions.the plaintiff claims.
The plaintiff argues that the asset is a highly centralized cryptocurrency that is profitable not for retail traders but for insiders. Thus, the plaintiff considers that companies such as OTC, a subdivision of FalconX, Multicoin Capital, and its partner Kyle Samani gain the most from cryptocurrency.
On Mark Young’s assurance, he bought SOL tokens late last summer, and since then, the asset’s value has dropped dramatically. He also believes that the way the token was created and the system for its sale fit the principle of the Howey Test, which determines whether an asset can be considered a security. According to the plaintiff, this implies that those who bought the token and invested in it expected profit through the promoters’ efforts, but instead, they got only a decrease in the asset price.
As an example of actions that caused investors to lose money, he cited situations with the pre-sale of coins before releasing them to the masses. According to Young, Multicoin, which invested heavily in Solana, brought into the SOL market “millions” and made “huge gains”. However, Young believes that the company has consistently promoted the token despite problems on the technical side of the blockchain. As for Multicoin’s sales, according to the plaintiff, it made them through FalconX.
In addition to recognizing the token as a security, the plaintiff seeks compensation for himself and other investors and demands to satisfy the imposition of legal expenses.