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After Solana’s new lawsuit, according to CryptoLaw founder John Deaton, dozens or perhaps hundreds of class actions may be launched.
Californian Mark Young, who claims to have bought SOL in late summer 2021, has accused Solana Labs, the Solana Foundation, Anatoly Yakovenko of Solana, VC firm Multicoin Capital, Kyle Samani of Multicoin, and trading desk FalconX in a prospective class-action lawsuit.
The Howey Test, a judgment by the U.S. Supreme Court that is frequently employed as a yardstick to determine whether or not a transaction involves the selling of securities, is a set of three requirements that must be satisfied, according to Young’s claim in the complaint, for SOL to be created and sold in a manner that satisfies all three of them.
Multicoin, a significant cryptocurrency venture capital firm that invested heavily in the Solana ecosystem, are allegedly “offloading millions of SOL” to retail after “relentlessly” promoting the token despite network-related technical difficulties.
XRP lawsuit
If XRP’s lawsuit against the SEC fails, according to the creator of CryptoLaw, this might only be the beginning.
In December 2020, the regulator initiated legal action against Ripple Labs Inc. and two of its executives, claiming they raised more than $1.3 billion through an unauthorized issuance of digital asset securities.
In an unregistered securities offering to investors in the US and elsewhere, Ripple allegedly generated money starting in 2013 by selling digital assets known as XRP.
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According to John Deaton, the SEC’s argument concerning XRP makes it by far the “most important altcoin in crypto” and may eventually determine whether the SEC has jurisdiction over the currently traded altcoins that have been there for years.
It’s equivalent to saying the orange trees or fruit in Howey were securities, he said.Almost every other altcoin becomes a security if it is embraced.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
