California investor Mark Young 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.

“The cornerstone of SOL’s value is the combined efforts of Solana Labs, the Solana Foundation, and the Solana Foundation. [Анатолия] Yakovenko In the management and implementation of the Solana blockchain. They created the network and all the tokens in circulation, and also determined who would buy the SOL securities and under what conditions,” he said.

He described the entity as a highly centralized cryptocurrency that benefits insiders at the expense of retail traders. Among the beneficiaries the investor is also venture capital firm Multicoin Capital, his partner Kyle Samani and OTC– Part of FalconX.

Yang stated that he purchased the tokens in late summer of 2021. Since then, the asset has depreciated significantly.

According to the investor, the way SOL is created and sold complies with the principles of the Howey test, which determines whether an asset is a security.

“Buyers who have purchased SOL securities have invested or provided services to Solana’s joint venture. “These investors, promoters, have a reasonable expectation of profit based on the efforts of Solana Labs and the Solana Foundation to build a blockchain network,” he said.

The investor pointed to several pre-sales of the asset prior to the public token sale. According to him, Multicoin, which has invested heavily in Solana, has made “huge profits” by bringing SOL to the “millions of dollars” retail market. At the same time, the plaintiff believes that the firm has “brutally” supported the token, despite the technical problems of the blockchain.

Yang believes that the alleged big sale of Multicoin took place through the FalconX platform.

He demanded that SOL be recognized as a security, compensation by the defendants for damages suffered by him and other investors in the asset, and “reasonable” reimbursement of legal costs.

Young is represented by the law firm Roche Freedman.

Recall that in June, the same company filed a class action lawsuit against Binance.US and CEO Brian Schroeder on behalf of investors LUNA and TerraUSD (UST).

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