LBRY Defies Securities and Exchange Commission, Vows to Fight Back
LBRY, a blockchain-based file-sharing and payment network, has made the bold decision to challenge the United States Securities and Exchange Commission (SEC). This comes after a federal judge ruled in favor of the SEC, causing LBRY to reconsider its earlier intend to wind down operations.
LBRY Takes Legal Action
LBRY has announced that it filed a notice of appeal to the United States Court of Appeals for the First Circuit, seeking to challenge the final judgment entered on July 11th. The judge’s ruling favored the SEC, imposing a civil penalty on LBRY and prohibiting its participation in future unregistered cryptocurrency asset securities offerings.
“Defendant LBRY, Inc. now appeals to the United States Court of Appeals for the First Circuit this Court’s final judgment entered on the 11th of July, 2023.”
The SEC’s States Against LBRY
In March 2021, the SEC sued LBRY Inc., accusing the network of selling its LBRY Credit token (LBC) as a security under the 1933 Securities Act. The United States District Court for the District of New Hampshire ruled in favor of the SEC on November 7th, barring LBRY from offering unregistered cryptocurrency asset securities and imposing a civil penalty of $111,614.
At the beginning, the SEC sought a far greater penalty of $22 Million but reconsidered due to LBRY’s financial limitations.
A Surprising Change of Events
Regardless of previously stating that the company was likely to cease operations, LBRY’s recent actions suggest a shift in strategy. The company’s founder and CEO, Jeremy Kauffman, expressed optimism about future of the the decentralized protocol regardless of the challenges faced by the company itself.
Although while LBRY had at the beginning planned to wind down entirely, the recent move indicates a possible change in course. This decision likewise aligns with the recent successes of other digital currency entities, such as Ripple and Grayscale, in their legal battles against the SEC.
Hot Take: LBRY’s Legal Battle Reflects the Cryptocurrency Industry’s Resilience and Determination
LBRY’s decision to fight back against the SEC showcases the cryptocurrency industry’s determination to overcome regulatory challenges. Regardless of facing legal setbacks, digital currencies and blockchain technologies continue to thrive and evolve. The outcome of LBRY’s appeal could have whole lot of implications for the industry as a whole, highlighting the importance of legal clarity and regulatory frameworks in the cryptocurrency space.
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