Attorney John Deaton Joins LBRY Lawsuit as Amicus Curiae
In 2022, attorney John Deaton, who represents XRP holders in the Ripple-SEC lawsuit, filed a notice to participate in the LBRY lawsuit as an Amicus Curiae. He also submitted a Notice of Appearance on behalf of Amicus Curiae Naomi Brockwell in the LBRY case, expressing a commitment to stay involved regardless of the outcome, stating, “Win, lose, or draw, we will remain in the fight.”
The SEC had accused LBRY in 2022 of violating securities laws by selling their native LBC tokens. LBRY contested these allegations but ultimately lost the case in July 2023. Consequently, LBRY was ordered to pay a reduced penalty of $111,614 and permanently cease any activities involving securities law violations or unregistered crypto securities offerings. LBRY chose to shut down following this ruling.
What Exactly Happened?
In 2022, lawyers Bill Gannon and John Deaton requested the court to submit a document on behalf of tech journalist Naomi Brockwell. In her statement, Brockwell outlined her vested interests in the case, citing earnings in the form of LBC cryptocurrency through tips, viewer purchases, and rewards. She also clarified that she had not converted her LBC tokens into cash and retained ownership of them.
In July 2023, the United States District Court in New Hampshire issued a final judgment in the SEC vs. LBRY case, finding LBRY guilty of violating the Securities Act of 1933.
The Ripple Labs case faced similar SEC allegations concerning the sale of $1.3 billion in XRP tokens. While some believed that the LBRY ruling might impact the XRP lawsuit, on July 14, 2023, U.S. District Judge Analisa Torres ruled in favor of Ripple, determining that XRP token sales to retail buyers did not classify as securities.
Who is an Amicus Curiae?
An “Amicus Curiae,” Latin for “friend of the court,” is an individual or organization that is not a party to a lawsuit but offers insights, expertise, or a brief to assist the court in its decision-making process.
Hot Take: John Deaton Continues to Advocate for Crypto Holders
Attorney John Deaton’s involvement in the LBRY lawsuit as an Amicus Curiae demonstrates his commitment to fighting for crypto holders’ rights. Despite LBRY’s loss and subsequent shutdown, Deaton remains dedicated to advocating for fairness and justice within the cryptocurrency industry. The ruling in the SEC vs. LBRY case may have set a precedent, but it does not directly impact other ongoing cases such as Ripple Labs’ lawsuit. Nevertheless, Deaton’s active participation showcases his determination to protect the interests of those involved in crypto-related legal battles.
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