{"id":471824,"date":"2022-07-08T07:08:10","date_gmt":"2022-07-08T04:08:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/class-action-lawsuit-claims-solanas-sol-is-an-unregistered-security\/"},"modified":"2022-07-08T07:08:10","modified_gmt":"2022-07-08T04:08:10","slug":"class-action-lawsuit-claims-solanas-sol-is-an-unregistered-security","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/class-action-lawsuit-claims-solanas-sol-is-an-unregistered-security\/","title":{"rendered":"# Class action lawsuit claims Solana&#8217;s SOL is an unregistered security"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a261e063d844\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a261e063d844\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/class-action-lawsuit-claims-solanas-sol-is-an-unregistered-security\/#%E2%80%9D_Class_action_lawsuit_claims_Solanas_SOL_is_an_unregistered_security_%E2%80%9C\" >&#8221; Class action lawsuit claims Solana&#8217;s SOL is an unregistered security  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Class_action_lawsuit_claims_Solanas_SOL_is_an_unregistered_security_%E2%80%9C\"><\/span>&#8221; Class action lawsuit claims Solana&#8217;s SOL is an unregistered security  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvMTk1YjQ5MmMtMWIzYi00YjYwLWE3NmItNjM3NTJjMDdhODdkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Solana Labs is the latest crypto company to be hit with a lawsuit accusing it of promoting an unregistered security.<\/p>\n<p>The class action was filed on July 1 by Roche Freedman LLP and Schneider Wallace Cottrell Konecky in the district court for the northern district of California on behalf of plaintiff Mark Young, a state resident.<\/p>\n<p>The lawsuit<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cand.397697\/gov.uscourts.cand.397697.1.0.pdf\"> accuses<\/a> Solana Labs, the Solana Foundation, Anatoly Yakovenko, Multicoin Capital Management, Kyle Samani, and FalconX, of selling unregistered securities tokens in the form of SOL from March 24, 2020.<\/p>\n<blockquote><p>\u201cDefendants made enormous profits through the sale of SOL securities to retail investors in the United States in violation of the registration provisions of federal and state securities laws, and the investors have suffered enormous losses,\u201d<\/p><\/blockquote>\n<p>The plaintiff is taking action on behalf of himself and other SOL investors with further claims that Solana Labs \u201cdeliberately misleading statements\u201d concerning the total circulating supply of SOL tokens.<\/p>\n<p>According to the lawsuit, Solana Labs founder Anatoly Yakovenko lent a market maker more than 11.3 million tokens in April 2020 and failed to disclose this information to the public. The company stated it would reduce the supply by this amount but only burnt 3.3 million tokens, the lawsuit claims.<\/p>\n<p>The plaintiffs also took umbrage with Solana\u2019s claims of being decentralized. \u201cAs of May 2021, insiders held 48% of the SOL supply. The network is thus highly centralized,\u201d it added.<\/p>\n<p>The lawsuit&#8217;s outcome could have significant implications for Solana and the broader crypto industry. SOL may be delisted from leading crypto exchanges if it is deemed to be a security by a court. Coinbase and Kraken delisted XRP in late 2020 following the SEC\u2019s lawsuit against Ripple, which is soon to be concluded.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Reliably unreliable: Solana price dives after latest network outage<\/em><\/strong><\/p>\n<p>The suit comes on top of Solana\u2019s ongoing reliability woes, with the network having suffered at least seven full or partial outages over the past 12 months. These outages were mentioned in the filing with claims they resulted in \u201cmajor losses for network users\u201d as they caused the trading value of SOL to fall dramatically.<\/p>\n<p>SOL prices have tanked 85% from their November 6 all-time high of $260 and are currently trading at a little under $40, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/solana\">CoinGecko<\/a>.<\/p>\n<p>Solana Labs and Multicoin Capital were contacted for comment but had not responded by the time this article was published.\n<\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/class-action-lawsuit-claims-solana-s-sol-is-an-unregistered-security\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Class action lawsuit claims Solana&#8217;s SOL is an unregistered security &#8220; Solana Labs is the latest crypto company to be hit with a lawsuit accusing it of promoting an unregistered security. The class action was filed on July 1 by Roche Freedman LLP and Schneider Wallace Cottrell Konecky in the district court for the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":471825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvMTk1YjQ5MmMtMWIzYi00YjYwLWE3NmItNjM3NTJjMDdhODdkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[92498,55229,70934,72287],"class_list":["post-471824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-solana","tag-law","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/471824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=471824"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/471824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/471825"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=471824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=471824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=471824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}