LBRY Appeals SEC Ruling on Unregistered Securities, Promises to Fight for Cryptocurrency Industry
LBRY, a blockchain-based file-sharing network, appeals SEC ruling on unregistered securities, vowing to defend the cryptocurrency industry. The New Hampshire court ruled against LBRY, requiring them to shut down and pay a penalty. However, LBRY intends to fight the decision, citing injustice and clear intent to harm the industry by the SEC.
Posted 2 months ago in Blockchain
Crypto startup LBRY has filed its intent to appeal the New Hampshire court's decision that it failed to register with the U.S. Securities and Exchange Commission (SEC). The SEC had sued LBRY, alleging that it violated federal securities laws by selling its native LBRY credits (LBC) without proper registration. Despite LBRY's claim that LBC is not a security, the court ruled in favor of the SEC in November. Following the final ruling on July 11, LBRY announced its plan to shut down.
LBRY has decided to appeal the court's decision because it believes it is unjust and incorrect. CEO Jeremy Kauffman stated that the SEC's intention to use this ruling to harm the cryptocurrency industry cannot be ignored. The company is determined to fight against it.
LBRY is not the only crypto firm facing SEC allegations. Ripple Labs, the blockchain platform, is also dealing with similar accusations over the sale of $1.3 billion in XRP tokens. A recent federal judge's ruling in favor of Ripple, which stated that direct sales of XRP to institutional investors violated securities law but programmatic sales to retail investors through exchanges did not, has provided hope for other firms involved in similar cases.
The SEC ruling requires LBRY to pay a reduced penalty of $111,614, as the regulator acknowledged the near-defunct status of the company. Additionally, LBRY is permanently restrained from participating in any unregistered crypto securities offering and violating federal securities laws.
The legal battle between LBRY and the SEC highlights the ongoing struggle between regulatory bodies and the cryptocurrency industry. As the industry continues to evolve and face challenges, it remains important for companies to navigate the regulatory landscape carefully.
Last updated 9/9/2023, 5:11:54 PM
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