While the cryptocurrency market is still struggling to recover from the previous damaging crisis, Solana’s legal troubles, one of its key participants, are about to deal another blow (SOL). According to a press release by the whistleblower and class action law firm Berger Montague on July 12, the firm was looking into possible federal securities law breaches on behalf of investors who bought SOL tokens sold by Solana Labs Inc.
Blockchain Network and Cryptocurrency Operators
The company said Solana Labs started issuing and selling its token to investors in the U.S. on or around March 24, 2020, and that it has kept doing so against the law up to the present. Berger Montague has also urged anyone with non-public information regarding Solana Labs to assist its investigation discreetly or take advantage of the SEC Whistleblower Program, which entitles participants to compensation of up to 30% of recoveries made by the SEC.
Solana Labs And Its Co-Defendants
According to a lawsuit filed earlier in July with the United States District Court for the Northern District of California, Solana Labs and its co-defendants are accused of issuing and offering SOL tokens to investors without first registering them with the U.S. Securities and Exchange Commission (SEC), as is required by federal securities laws. The lawsuit states that Solana Labs and its co-defendants promoted and sold unregistered SOL securities to investors between March 2020 and the present. As a result of the defendants’ omissions and unqualified promises, these investors sustained losses.