LBRY Gears Up to Contest US Securities Law Violation Ruling
In a recently filed court document, blockchain-based publishing company LBRY has signaled its intent to challenge a New Hampshire district court’s verdict. This ruling, made in November 2022, concurred with the U.S. Securities and Exchange Commission (SEC) stating that LBRY presented its digital assets as securities or investment contracts.
Unregistered Crypto Securities Saga: LBRY Challenges SEC Amid Wider Crypto Scrutiny
The LBRY project has lodged its intention to contest U.S. district judge Paul Barbadoro’s ruling, which determined LBRY peddled unregistered securities. On November 7, 2022, the court greenlit the SEC’s summary judgment request, deeming LBRY, Inc. in breach of Section 5 of the Securities Act of 1933.
After the verdict, LBRY faced a fine of $111,614 and was “permanently restrained” from any security offerings based in the United States. The blockchain project stood as the first crypto venture to square off with the SEC in such a case.
Subsequently, the U.S. securities watchdog has launched a plethora of enforcement actions, tagging numerous crypto assets as “unregistered securities.”
Currently, these alleged crypto securities boast a combined valuation surpassing $78 billion. Amid the extensive list spotlighted by the SEC, LBRY is the 36th largest by market capitalization.
Timothy McLaughlin from the law firm Shaheen & Gordon submitted LBRY’s intention to appeal. On the social media network X (previously known as Twitter), LBRY announced it had “filed a Notice of Appeal against the SEC.”
What do you think about LBRY appealing the New Hampshire court’s verdict? Share your thoughts and opinions about this subject in the comments section below.
