The cryptocurrency market is no stranger to regulatory turbulence, and Solana, a leading layer-1 blockchain, has recently found itself at the center of discussions about potential investigations. With its high-throughput architecture and thriving ecosystem, Solana has captured the attention of investors and developers alike. However, whispers of Solana under investigation have sparked concerns about its future. This article delves into the origins of these claims, the regulatory landscape, and their implications for Solana’s trajectory in 2025, offering a balanced perspective on a complex issue.
The Roots of the Investigation Narrative
In June 2024, a crypto analyst known as Crypto Bitlord posted on X, alleging that Solana was under investigation for undisclosed reasons, predicting a potential price crash to below $10. The post, viewed over 600,000 times, sent ripples through the crypto community, especially as SOL was already down 20% to $127.
However, the claim lacked verifiable evidence, and Bitlord’s credibility was questioned due to their involvement in a failed project. No regulatory body, such as the U.S. Securities and Exchange Commission (SEC), confirmed an active probe, suggesting the rumor was speculative.
More concretely, the narrative of Solana under investigation stems from a 2023 SEC lawsuit against Coinbase, which labeled SOL as an unregistered security. Filed in June 2023, the lawsuit argued that Solana, among other tokens, met the Howey Test criteria for securities, requiring compliance with disclosure regulations.
The Solana Foundation refuted this, asserting that SOL is a utility token for network operations. As of April 2025, the lawsuit remains unresolved, but the SEC’s recent decision to drop its probe into Coinbase signals a potential de-escalation of pressure on SOL.
Legal and Regulatory Context
Beyond the SEC’s allegations, a 2022 class action lawsuit against Solana Labs added fuel to the Solana under investigation narrative. Filed in July 2022, the lawsuit accused Solana Labs of selling unregistered securities and misleading investors about SOL’s circulating supply. It alleged that founder Anatoly Yakovenko lent 11.3 million SOL tokens to a market maker in 2020, only burning 3.3 million as promised, inflating the supply. While serious, the lawsuit has seen no significant updates by April 2025, suggesting limited impact on Solana’s operations.
The regulatory landscape shifted in early 2025 under President Donald Trump’s administration. On January 23, 2025, Trump’s Executive Order 14178 dismantled the Justice Department’s National Cryptocurrency Enforcement Team (NCET), redirecting enforcement efforts toward criminal activities like drug trafficking rather than regulatory violations. This policy change, coupled with Solana’s inclusion in a U.S. national digital asset stockpile, reduces the likelihood of new investigations into Solana for securities issues, countering earlier SEC claims.
Ecosystem Challenges and Meme Coin Scandals
Solana’s ecosystem, while innovative, has faced scrutiny that amplifies the Solana under investigation narrative. In 2025, two meme coin scandals on Solana’s blockchain drew attention. The LIBRA token, endorsed by Argentine President Javier Milei, crashed 94% in February 2025 due to insider selling, triggering an anti-corruption probe in Argentina. Similarly, the Official Trump (TRUMP) meme coin collapsed after insider sales, contributing to a 49% drop in SOL’s price from $261 to $133 between January and March 2025.
These incidents, while not directly implicating Solana Labs, highlight vulnerabilities in Solana’s ecosystem, where its high-throughput blockchain attracts speculative projects. Critics argue that lax oversight of token launches could invite regulatory scrutiny, though no specific investigations targeting Solana for meme coin activity have been confirmed. The Solana Foundation has emphasized its commitment to ecosystem integrity, but these scandals underscore the need for robust governance.
Market Impact and Investor Sentiment
The Solana under investigation narrative has contributed to market volatility. SOL’s price fell 29% year-to-date in 2025, trading at $125–$133 as of April, down 57.55% from its all-time high of $294.85. The meme coin scandals and a 17% crypto market downturn exacerbated this decline. However, positive developments, such as Solana’s inclusion in CME Group futures and potential ETF approval, have bolstered optimism. X posts reflect mixed sentiment, with some users celebrating Solana’s growth and others citing past SEC allegations.
Solana’s ecosystem remains robust, with $9.5 billion in USDC stablecoins minted in 2025 and the upcoming Firedancer upgrade promising 1 million transactions per second. These advancements suggest that regulatory concerns have not derailed Solana’s technological progress.
Looking Ahead
The Solana under investigation narrative is rooted in a mix of unverified rumors, historical SEC allegations, and ecosystem challenges. As of April 2025, no active investigation specifically targets Solana Labs, and the Trump administration’s pro-crypto policies reduce the risk of new probes. However, the unresolved SEC lawsuit and meme coin scandals highlight ongoing vulnerabilities that Solana must address to maintain investor confidence.
For investors, the key is to approach the Solana under investigation claims with skepticism, focusing on verified information. Solana’s technological strengths and growing institutional adoption position it as a leader in the blockchain space, but vigilance regarding regulatory developments remains essential. As the crypto landscape evolves, Solana’s ability to navigate these challenges will shape its future.