Rumors are swirling around Solana as Crypto Bitlord, a well-known figure in the crypto world, suggested on X that the cryptocurrency might be under investigation. This speculation, he claims, has been building for weeks and could soon become public, potentially causing significant repercussions for Solana.

Is Solana Under Investigation?

Crypto Bitlord posted, “We are hearing rumors that $SOL is under investigation.” In addition, he noted that a “huge case is about to become public.” This has been brewing for weeks now and couldn’t come at a worse time. If what we heard is true, start praying for Solana.”

The recent comment has stirred significant skepticism in the Solana community. Crypto Bitlord spotlighted this and stated, “I’ve already seen a lot of cope and denial in the comments.” Addressing the concerns, he added, “It’s sad when everyday people get caught up in things they don’t understand and lose money from it.”

The latest speculations around Solana being under investigation mirrors Ethereum’s (ETH) recent scrutiny. After the U.S. Securities & Exchange Commission (SEC) closed its 14-month long investigation on Ethereum, Solana seized the limelight over the debates on security status. However, these debates were short-lived and didn’t gain significant attention until the latest speculations splurged in.

Amid these rumors, Solana’s value plunged nearly 8% to $124. The decline might not be directly connected to the rumors but could have been influenced by them, along with other market factors. Furthermore, SOL experienced a massive selloff. According to Coinglass, Solana saw $10.75 million in long liquidation as investors, gripped by panic, sold off to mitigate losses.

In addition, Shiba Inu’s marketing lead, Lucie, also raised concerns around the Solana community on X. She stated, “Celebrities’ accounts posting SOL addresses left and right are probably hacked. PLEASE BE WISE and don’t get scammed.” These events have heightened scrutiny around the Solana ecosystem, but they do not confirm the rumors spread by Crypto Bitlord.

About Crypto Bitlord

Crypto Bitlord has a notable history in the cryptocurrency space. He was an early contributor to the Ethereum ICO, adopted Bitcoin in 2012. In addition he supported projects like ADA and Dot/KUSAMA from their inception. Moreover, his knack for identifying early trends includes backing billion-dollar meme coins like Shiba Inu (SHIB), Floki (FLOKI), and Pepe Coin (PEPE).

Despite this, his reputation has been tarnished by a rug pull controversy. In November 2023, he raised $5 million for a mystery project (MOLLY) that quickly plummeted in value, leading to accusations of a rug pull. Hence, the legitimacy of the Solana investigation rumors is questioned.

Also Read: Solana Exec Explains How ZK Compression Cuts On-chain Storage Cost By Over 99%

SEC Drops Ethereum Probe

In contrast, Ethereum recently saw a positive turn of events. Earlier this month, ConsenSys, an Ethereum software firm, reached out to the SEC regarding the status of its investigation into Ethereum 2.0. In a letter sent earlier in the month, ConsenSys sought clarity on whether the approval of a Spot Ethereum ETF would result in the closure of the ongoing investigation. Moreover, ConsenSys later announced that the SEC had closed its investigation into Ethereum 2.0.

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

Furthermore, the closing of the Ethereum investigation is seen as a victory. However, it also highlights the ongoing regulatory challenges faced by the crypto industry. ConsenSys emphasized that clear guidelines are essential for the advancement of crypto technologies and innovations.

Meanwhile, the rumors about Solana emerge amid 3iQ’s Solana Fund application in Canada, claiming to be the first Solana ETP in North America. Hence, this situation mirrors Ethereum’s regulatory challenges, which has led to a cautioned approach among industry participants.

Also Read: ETH Price Reversal Soon As Ethereum ETF Coming In Two Weeks

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