Crypto millionaire sheds light on rumors that Solana is under investigation. What’s going on?

Rumors are circulating around Solana (SOL) as Crypto Bitlord, a well-known figure in the crypto world, has hinted on X that the cryptocurrency may be under investigation. This speculation, he claims, has been building up for weeks and may soon become public, potentially having a significant impact on Solana.

Is Solana under investigation?

Crypto Bitlord wrote, “We’ve heard rumors that $SOL is under investigation.” He also noted that a “major case is about to become public.” He added, “This has been brewing for weeks and couldn’t come at a worse time. If what we’ve heard is true, then start praying for Solana.”

The recent comment has generated considerable skepticism in the Solana community. Crypto Bitlord highlighted this, stating, “I’ve already seen a lot of handling and rejection in the comments.” Addressing the concerns, he added, “It’s sad when normal people get caught up in things they don’t understand and lose money as a result.”

The recent speculation surrounding an investigation into Solana mirrors the recent investigation into Ethereum (ETH). After the U.S. Securities and Exchange Commission (SEC) concluded its 14-month investigation into Ethereum, Solana was in the spotlight of debates about its security status. However, these debates were short-lived and only gained wider attention with the recent speculation.

Amid these rumors, Solana price plunged by nearly 8% to $124. The drop may not be directly related to the rumors, but it could have been influenced by them as well as other market factors. In addition, SOL experienced a massive sell-off. According to Coinglass, Solana saw liquidation of long positions worth $10.75 million as panic-stricken investors sold their positions to limit losses.

In addition, Lucie, Marketing Director of Shiba Inu, also raised concerns about the Solana community on X. She stated, “The accounts of celebrities who constantly post SOL addresses are probably hacked. PLEASE BE CAREFUL and do not get scammed.” These events have drawn attention to the Solana ecosystem, but do not confirm the rumors spread by Crypto Bitlord.

About Crypto Bitlord

Crypto Bitlord has a distinguished history in the cryptocurrency space. He was one of the first contributors to the Ethereum ICO and adopted Bitcoin in 2012. In addition, he supported projects like ADA and Dot/KUSAMA from the beginning. Moreover, his talent for spotting early trends includes supporting billion-dollar meme coins like Shiba Inu (SHIB).

Floki (FLOKI) and Pepe Coin (PEPE).

Despite this, his reputation was tarnished by a rug-pull controversy. In November 2023, he raised $5 million for a mysterious project (MOLLY), whose value quickly plummeted, leading to accusations of a rug-pull. Therefore, the legitimacy of the rumors surrounding Solana’s investigation is being questioned.

Also read: Solana Exec Explains How ZK Compression Reduces On-Chain Storage Costs by Over 99%

SEC closes Ethereum investigation

In contrast, Ethereum has recently seen a positive turn. Earlier this month, ConsenSys, an Ethereum software company, reached out to the SEC to find out the status of its investigation into Ethereum 2.0. In a letter sent earlier this month, ConsenSys asked for clarity on whether the approval of a spot Ethereum ETF would result in the termination of the ongoing investigation. Furthermore, ConsenSys later announced that the SEC had closed its investigation into Ethereum 2.0.

This confirmed that ETH sales are not considered securities transactions. ConsenSys stated: “Today, we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: The SEC’s Enforcement Division has notified us that it is closing its investigation into Ethereum 2.0.”

Furthermore, the conclusion of the Ethereum investigation is seen as a victory. However, it also highlights the ongoing regulatory challenges facing the crypto industry. ConsenSys stressed that clear guidelines are essential for the advancement of crypto technologies and innovation.

Meanwhile, rumors about Solana are emerging in the wake of 3iQ’s Solana Fund filing in Canada, which is said to be the first Solana ETP in North America. So, this situation reflects Ethereum’s regulatory challenges, which has led to a cautious approach among industry participants.

Also read: ETH price reversal soon as Ethereum ETF arrives in two weeks