Solana Filed Class Action Lawsuit in California Federal Court

Investor Mark YOUNG has accused key players in the Solana ecosystem of illegally profiting from the native SOL token. According to the lawsuit, the coin is an unregistered security. Mark Young described the asset as a highly centralized cryptocurrency that benefits insiders at the expense of retail traders.

Among the beneficiaries, the investor indicated the venture capital firm Multicoin Capital, its partner Kyle SAMANI and the FalconX OTC division. He stated that after buying the token at the end of the summer of 2021, the asset lost significantly in price. In his opinion, the way SOL is created and sold is consistent with the principles of the Howey test, which determines whether an asset is a security.

The investor pointed to several pre-sales of the asset ahead of the public token sale. Multicoin, which invested heavily in Solana, brought millions of dollars worth of SOL to the retail market and made big profits, he said. At the same time, the firm promoted the token despite the technical problems of the blockchain, the plaintiff added.

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