As the cryptocurrency market is still trying to recover from the bearish slump that has plagued it in recent weeks, another blow is looming on the horizon in the form of legal action against one of its key participants – Solana (FLOOR).
In this case, whistleblower and class action law firm Berger Montague said it was investigating violations of federal securities laws on behalf of investors who purchased SOL tokens issued by Solana Labs Inc., according to the firm’s press release published on July 12.
Specifically, the company said the blockchain network and crypto operator began issuing and selling its token to investors in the United States on or around March 24, 2020, alleging that it had continued to do so in violation of the law until now.
Meanwhile, he also encouraged “anyone with non-public information regarding Solana Labs (…) to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower Program”, under which they may receive rewards of up to 30% of recoveries obtained per second.
Legal action against Solana Labs
Earlier in July, a lawsuit was filed in the United States District Court for the Northern District of California alleging that Solana Labs and its co-defendants issued and offered SOL tokens to investors without registering them with of the United States Securities and Exchange Commission (SEC). as required by federal securities laws.
The lawsuit alleges that throughout the period from March 2020 to the present, Solana Labs and its co-defendants promoted and sold unregistered SOL securities to investors and that those investors suffered damages as a result of the omissions. and unqualified promises of the defendants.
Other lawsuits against crypto companies
As a reminder, Solana is not the only blockchain company that has found itself in a difficult situation due to regulatory uncertainty regarding the sale of crypto assets not registered with the country’s financial authorities.
Indeed, Ripple Labs Inc. has been locked in a high-profile legal battle with the SEC which alleged that the company sold over $1.3 billion in unregistered XRP tokens between 2013 and December 2020.