Investor of Solana has filed a collective action against the main stakeholders of the Solana network for the alleged advantage of SOL, the native currency of the blockchain which, according to the claim, is unregulated security.
The filing was filed in California by attorneys representing a homeowner. Based on the specifics of the complaint, it was filed earlier this month with Mark Young as the plaintiff.
Among the defendants were popular venture capital firm Multicoin Capital and its CEO Kyle Samani, one of Solana’s staunchest supporters.
Solana Token Offered Without Legal Documentation?
The California District Court argues that the defendants marketed allegedly unregistered securities and offered SOL cryptocurrency as securities without legally registering them.
The lawsuit featured SOL as a highly centralized cryptocurrency that favored its insiders at the expense of regular investors. According to court documents, the defendants have allegedly spent extravagant sums to advertise SOL in the United States, which has apparently increased its price to $258 per token and the market value to 477 billion starting from 5 November last year.
Although SOL was among the best performing tokens in 2021, its record of $259 has already dropped more than 85% from its current price. It currently stands at $36.83, down 0.6% from the previous 24 hours.
Solana Intake Despite The Market Downturn
Over the years, there have been complaints of securities violations against a large number of other cryptocurrency companies. In this case, the plaintiff claims that he has suffered damages and is therefore required to file a complaint.
The recent market downturn has hurt a number of cryptocurrency ventures, but Solana does not appear to be among them.