Solana’s SOL token is an unregistered security whose insiders have benefitted while retail suffered, the suit alleged.
A class action suit filed in California federal court last week accuses key players in the Solana ecosystem of illegally profiting from SOL, the blockchain’s native token that according to the suit is an unregistered security.
“The cornerstone of the value of SOL securities is the sum of Solana Labs, Solana Foundation, and [Anatoly] Yakovenko’s management and implementation of the Solana blockchain,” the suit alleged. It described SOL as a highly centralized cryptocurrency that has benefited its insiders to the detriment of retail traders.
Filed by California resident Mark Young, who said he bought SOL in late summer 2021, the suit names Solana Labs, the Solana Foundation, Solana’s Anatoly Yakovenko, crypto VC giant Multicoin Capital, Multicoin’s Kyle Samani and trading desk FalconX.