Blockchain startup LBRY has filed a notice of appeal of the July 11, 2023 decision in the District of New Hampshire.
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LBRY has filed a Notice of Appeal against the SEC. pic.twitter.com/Zp9S0TP0Qw
— LBRY 🚀 (@LBRYcom) September 7, 2023
In March 2021, the US Securities and Exchange Commission (SEC) filed a lawsuit against the decentralized content publishing platform. The regulator accused LBRY of selling unregistered securities in the form of the LBC token as part of an $11 million ICO.
According to startup CEO Jeremy Kaufman, the agency has clearly demonstrated that it intends to “damage or destroy the cryptocurrency industry in the United States.”
In November, the court upheld the SEC’s claim against LBRY. The Commission later asked that the crypto startup’s civil penalty be reduced from $22 million to $111,614, explaining that the project would not be able to pay the initial claim due to “insufficient funds” and “near-going-out-of-business status.”
Some experts drew parallels with the Ripple case. Thus, lawyer and adjunct law professor Andrew Rossow declaredthat the verdict in the LBRY case could become a precedent for a fintech company.
The SEC and Ripple have been involved in a legal battle since 2020. The commission accused the firm of unregistered sales of securities in the form of XRP worth $1.3 billion.
However, in July 2023, the Southern District of New York has concludedthat program sales and other token distributions do not constitute the offer and implementation of investment contracts. The SEC subsequently filed an appeal.
In August, the regulator lost a second case against participants in the crypto industry – the court granted Grayscale Investments’ requests to convert GBTC issued by the company into an ETF, contrary to the Commission’s position.
Let us remember that after this, member of the US House of Representatives Warren Davidson called for the removal of Gary Gensler from the post of chairman of the department.
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2023-09-08 12:20:06
#LBRY #resume #legal #battle #SEC #ForkLog
