Solana Sued for Unfair Practices

Solana and other companies, closely related to it, face a class action suit filed on the first day of this July.

The plaintiff, Mark Young, is suing Solana Labs, Solana Foundation ,Solana CEO Anatoly Yakavenko ,crypto investment firm Multicoin Capital, Kyle Samani and FalconX ,a trading platform.

The allegations include making harmful statements with intentions to mislead their customers and resultantly profiting from the sale of unregistered securities.

Young claims that the parties being sued made huge and unreasonable profits, directly, from the sale of SOL securities to retail customers within the United States, in direct contradiction with the registration provisions of federal and state securities laws, directly resulting in huge losses for investors including Mark Young, who obtained his SOL tokens in 2021.

The suit was filed on behalf of investors, lured into making Solana token purchases, between March 24,2020 and the filing date, this year according to Young.

Although none of the multiple company representatives were available for comment, court documents place Young fingering the defendants as having spent excessive amounts of money in the U.S, since April 2020, to advertise SOL.

This led to the inflated token price of SOL rising to $258 and its market value being overvalued at a whopping $77 billion since November 5,2021.

Young also claimed that these misleading actions led SOL assets, directly from the abyss, into the limelight, becoming one of the top crypto-assets in the world.

The main deceit came in misleading investors on the scarcity of SOL tokens by driving down available supply and pretense of a high level of decentralization, when in fact the defendants held 48% of SOL supply.

Solana depreciated by 78% this year alone, with 12% of that occurring in the last month to $36.85 as shown by Blockworks Research.

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