Attorney John Deaton Joins LBRY Lawsuit as Amicus Curiae
Attorney John Deaton, who is known for representing XRP token holders in their legal battle against the SEC, has filed a formal notice of appearance as an Amicus Curiae in the LBRY lawsuit. This comes after LBRY filed an appeal notice to contest the final judgment that ordered them to pay a civil penalty and prohibited their involvement in unregistered offerings of cryptocurrency securities.
Deaton’s Notice of Appearance
Deaton submitted his Notice of Appearance on behalf of Amicus Curiae Naomi Brockwell. Both Deaton and Brockwell are co-founders of Crypto Law, a platform that provides updates on legal and regulatory developments related to digital assets. Deaton confirmed this development with a tweet, stating, “Win, lose or draw, we will be in the fight!”
The SEC’s Scrutiny of LBRY
In March 2021, the SEC claimed that LBRY Credit token (LBC) was a security under the 1933 Securities Act, initiating its scrutiny of LBRY. In November 2022, a New Hampshire District Court ordered LBRY to pay $22 million to the SEC, considering LBC an unregistered security based on the Howey test.
Challenging the Ruling
LBRY challenged the ruling, arguing that the $22 million penalty did not account for legitimate business expenses. The SEC requested a reduced penalty due to LBRY’s insolvency, resulting in a revised sum of $111,614. Despite plans to cease operations gradually, recent legal victories by Ripple and Grayscale against the SEC have given LBRY hope for a favorable outcome in their appeal.
Hot Take: John Deaton Joins LBRY Lawsuit as an Advocate for Crypto Community
Attorney John Deaton’s decision to join the LBRY lawsuit as an Amicus Curiae demonstrates his commitment to representing the interests of the crypto community. With his experience in the legal battle against the SEC on behalf of XRP token holders, Deaton brings valuable expertise to the case. The involvement of Crypto Law co-founders Deaton and Brockwell further solidifies their dedication to providing updates on legal and regulatory developments in the digital asset space. This development raises hopes for a positive outcome for LBRY in their appeal, especially in light of recent legal victories by other crypto entities against the SEC.
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