Investors Sue Solana Labs, Alleging SOL Is ‘Highly Centralized’ Unregistered Security

A class-action lawsuit has been filed against layer-1 blockchain Solana on the grounds that the smart contract platform is not as decentralized as advertised.

The suit also claims Solana is in violation of US law regarding the sale of unregistered securities and invokes the Howey Test, a four-part metric established by the Supreme Court to determine whether or not a particular transaction qualifies as an investment contract.