Attorney John Deaton Joins LBRY Lawsuit as Amicus Curiae
In 2022, attorney John Deaton, who represents XRPย Rippleย (XRP) holders in the Ripple-SEC lawsuit, filed a notice toย joinย the LBRY lawsuit as an Amicus Curiae. He likewise 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, โWin, lose, or draw, we will remain in the fight.โ
The SEC had accused LBRY in 2022 of violating securities laws by selling their native LBC tokens. LBRY contested these states but inย theย end 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 cryptocurrency securities offerings. LBRY chose to shut down asย aย resultย ofย 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 digitalย currency through tips, viewer purchases, and rewards. She likewise madeย itย clearย that she had not converted her LBC tokens into cash and retained ownership of them.
In July 2023, theย Unitedย States District Court in New Hampshire announced 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 states concerning the sale of $1.3 Billion in XRPย Rippleย (XRP) tokens. Althoughย while some believed that the LBRY ruling might impact the XRPย Rippleย (XRP) lawsuit, on July 14, 2023, Unitedย States District Judge Analisa Torres ruled in favor of Ripple, determining that XRPย Rippleย (XRP) token sales to retail buyers did not classify as securities.
Who is an Amicus Curiae?
An โAmicus Curiae,โ Latin for โfriend of the court,โ is an individual or organization that is not a party to a lawsuit but offers insights, expertise, or a brief toย help the court in its decision-making process.
Hot Take: John Deaton Continues to Advocate for Cryptocurrency Holders
Attorney John Deatonโs engagementย in the LBRY lawsuit as an Amicus Curiae demonstrates his commitment to fighting for cryptocurrency holdersโ rights. Regardlessย of LBRYโs loss and subsequent shutdown, Deaton remains dedicated to advocating for fairness and justice within the digitalย currency 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 Labsโ lawsuit. Nevertheless, Deatonโs active participation showcases his determination to protect the interests of those involved in crypto-related legal battles.
Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content.
