Solana Labs and key players in the Solana ecosystem were hit with a lawsuit on July 1 in California federal court.
The lawsuit accused Solana Labs, the Solana Foundation, Anatoly Yakovenko, prominent crypto venture capital firm Multicoin Capital Management, and its CEO Kyle Samani, as well as trading platform FalconX of making illegal profits from what it claims to be an unregistered security.
“Defendants made enormous profits through the sale of SOL securities to retail investors in the United States in violation of the registration provisions of federal and state securities laws, and the investors have suffered enormous losses.”
It could also lead to many exchanges ultimately removing SOL, a case similar to that of Ripple when XRP was delisted from many platforms after the SEC sued the blockchain firm.