Solana Hit by Lawsuit, XRP Lawyers Warns More On The Way

  • A North California resident slammed Solana with a class-action lawsuit for the unregulated sale of SOL tokens.
  • XRP holders’ lawyer warned of more lawsuits, after news of Solana Labs, Solana foundation, co-founders being drawn in a legal battle.
  • XRP is on track to breakout, posting massive gains over the past week.

Solana has been hit by a lawsuit similar to Ripple, accusing the Ethereum-killer of selling unregistered securities SOL tokens. The plaintiff has accused Solana of profiteering from the sale of SOL tokens while retail traders incurred losses.

John Deaton, XRP lawyer, raised a warning regarding the future of the crypto industry. Deaton believes that if XRP is deemed a security then hundreds of class-action suits will be filed against cryptocurrencies in the future. Not only tokens or exchanges but promoters of altcoins can come under regulatory scrutiny.

The plaintiff accused Solana insiders of profiting immensely from the sale of unregistered securities “SOL” tokens. Despite being slammed by the lawsuit, Solana announced its largest event of 2022, the Solana Breakpoint Conference for 2022.

As per reports, Mark Young accused Solana Labs, Solana Foundation, co-founder Anatoly Takovenko, Multicoin Capital Management, and its co-founder Kyle Samani, and FalconX. The California resident believes that these entities and individuals made profits from the sale of SOL. These entities are therefore in violation of the registration provisions of federal and state securities laws.

Solana is a largely centralized altcoin and insiders hold 48% of the altcoin’s supply. Solana has less than 1,000 validators, making the altcoin more centralized than most other altcoins.

Solana entered into a partnership with Jump to organize Hacker House events ahead of the Breakpoint Conference on November 4-7 in Portugal. Several projects that are building on the Solana blockchain and the community of holders will come together at the Breakpoint Conference.

Solana price has gained 11.5% over the past week, recouping losses. Solana price could break into a rally and target $ 52.

SOL-USD Price Chart (Source: TradingView)

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.

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