Solana Labs and Multicoin Capital accused of violating the law

A Solana investor has filed a legal case against major parties involved in the blockchain Solana ecosystem, alleging he made misleading statements and made profits by selling unregistered securities to retail customers. The accused in the case include Solana Labs, Solana Foundation, Solana Chief Executive Officer Anatoly Yakovenko and crypto investment firm Multicoin Capital.

The case, filed by Solana investor Mark Young, states that Solana Labs and others sold SOL as securities without a securities statement. They have also claimed that the defendants promoted these alleged unregistered securities. Young said he bought SOL in September last year. They said, “The buyers of SOL Securities had invested in an enterprise Solana. These individuals expect to profit from the efforts of promoters Solana Labs and Solana Foundation to build a blockchain network that competes with Bitcoin and Ethereum.”

One of the allegations against Solana Labs in this case is that the defendants benefit from SOL being centralized crypto. Young claims that the defendants profited from losses from retail investors. Documents submitted to the court show that the defendants spent large sums of money to promote SOL in the US. This had led to a rise in the price of SOL.

Coinbase, one of the major crypto exchanges, has rolled out staking benefits for Solana, which will reward SOL investors. These rewards will be given for holding and staking SOL coins in the network of the exchange. The current estimated return of staking on Coinbase for Solana is approximately 3.85 percent Annual Percentage Yield (APY). Rewards will be given out every three to four days. The process of staking involves depositing crypto assets and validating transactions to support a blockchain network. Blockchains that support Proof-of-Stake (PoS) mining allow staking. Staking gives cryptocurrency holders an opportunity to increase returns. Solana is a PoS blockchain. It gives SOL holders an opportunity to hold their assets and earn returns.

Cryptocurrency prices in Indian exchanges

For the latest tech news, smartphone reviews and exclusive offers on popular mobiles, download the Gadgets 360 Android app and follow us on Google News.

Related news

Leave a Comment