Solana Labs and Multicoin Capital Accused of Violating Securities Law by $SOL Investors in California

Some $SOL investors filed a class action suit in California federal court last week, accusing key players in the Solana ecosystem, including Solana Labs, Solana Foundation, Multicoin Capital and FalconX, of illegally profiting from $SOL, CoinDesk reports. The suit described $SOL as a highly centralized cryptocurrency that has benefited its insiders to the detriment of retail traders. According to the suit, the way $SOL was created and sold meets the three tenets of the Howey Test, and the token is an unregistered security. In addition, the suit accused Multicoin Capital, a major investor of the Solana ecosystem, of promoting $SOL and offloading millions of dollars of $SOL onto retail in spite of Solana blockchain's tech issues. This alleged offload passed through FalconX OTC desks.