$SOL Solana is currently the subject of a reported investigation, as indicated by a prominent influencer on social media platform X. The specifics of the investigation have not been fully disclosed.
Last year,
$SOL was among the crypto tokens labeled as "security" by the US Securities and Exchange Commission (SEC).
Allegations of Criminal Investigation Surrounding Solana
A well-known influencer in the crypto space, Crypto Bitlord, with a substantial following of almost 330,000 on X, has brought attention to rumors about a potential criminal investigation targeting #Solana.coin Apparently, the investigation has been ongoing for several weeks and could potentially spell trouble for the altcoin.
"We are receiving reports that SOL is under investigation and a significant case is on the brink of being made public. This has been brewing for weeks and couldn't have emerged at a more inconvenient time. If the rumors hold true, brace yourselves for Solana," Bitlord stated.
$ADA was also among the tokens identified as securities by the financial regulator.
In addition to these designations, the SEC filed lawsuits against Binance and Coinbase, accusing them of trading unregistered securities. The crux of the lawsuit revolved around the Howey Test, a legal framework used to determine if an investment qualifies as a security. At the time, SEC chair Gary Gensler stated that "everything other than Bitcoin" could be classified as a security.
Similar to Solana, Ethereum has also come under regulatory scrutiny over concerns about its potential classification as an unregistered security. However, the recent resolution of the investigation in favor of Ethereum has bolstered investor confidence. On the contrary, legal expert Drew Hinkes suggests that Solana may not have a similar positive outcome.
"The conclusion of the #Ethereum2 investigation was favorable for the company, but it may not carry the same weight for other Proof-of-Stake (POS) tokens," Hinkes pointed out.
The legal expert intimates that other tokens might still be at risk. POS coins such as Solana and Polygon have likely not undergone investigations like Ethereum 2.0 did. Consequently, the parameters related to their creation and distribution, among other aspects, could differ from those of Ethereum.
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