Berger Montague, a class action law firm, announced via press on Tuesday, July 12, that it has instituted legal actions against Solana on behalf of investors who purchased SOL tokens between March 24, 2020, till date.
They further stated that Solana and its co-defendants issued and sold SOL that has not been registered with the U.S. Securities and Exchange Commission (SEC) as required under the federal securities laws.
The law firm also announced that they had created a program to reward whistleblowers with about 30% of obtained recoveries, saying “anyone with non-public information regarding Solana Labs (..) to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program.
Earlier this month, some investors led by Mark Young filed a lawsuit against Solana, accusing it of misleading them about SOL’s total circulating supply and decentralized nature. Naming Solana Labs, CEO Anatoly Yakovenko, the Solana Foundation, Multicoin Capital Management LLC, Kyle Samani, and Falconx LLC as the defendants.
The document stated, “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.”
SEC Chair Gary Gensler stated, “we need additional Congressional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing volatile sector”.