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 theย Unitedย States Securities and Exchange Commission (SEC). This comesย after a federal judge ruled in favor of the SEC, causing LBRY to reconsider its earlier intendย to wind down operations.
LBRY Takes Legal Action
LBRY has announced that it filed a notice of appeal to theย Unitedย States Court of Appeals for the First Circuit, seeking to challenge the final judgment entered on July 11th. The judgeโs ruling favored the SEC, imposing a civil penalty on LBRY and prohibiting its participation in future unregistered cryptocurrency asset securities offerings.
โDefendant LBRY, Inc. now appeals to theย Unitedย States Court of Appeals for the First Circuit this Courtโs final judgment entered on the 11th of July, 2023.โ
The SECโs 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 Unitedย 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.
Atย theย beginning, the SEC sought a farย greater penalty of $22 Million but reconsidered due to LBRYโs financial limitations.
A Surprising Change of Events
Regardlessย of previously stating that the company was likely to cease operations, LBRYโs recent actions suggest a shift in strategy. The companyโs founder and CEO, Jeremy Kauffman, expressed optimism about futureย ofย the the decentralized protocol regardlessย of the challenges faced by the company itself.
Althoughย while LBRY had atย theย 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 digitalย currency entities, such as Ripple and Grayscale, in their legal battles against the SEC.
Hot Take: LBRYโs Legal Battle Reflects the Cryptocurrency Industryโs Resilience and Determination
LBRYโs decision to fight back against the SEC showcases the cryptocurrency industryโs determination to overcome regulatory challenges. Regardlessย of facing legal setbacks, digitalย currencies and blockchain technologies continue to thrive and evolve. The outcome of LBRYโs appeal could have wholeย lotย 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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