LBRY Will Appeal ‘Unjust and Incorrect’ SEC Lawsuit Ruling, Says CEO

LBRY, a blockchain-based content sharing platform and cryptocurrency, plans to appeal the recent ruling by the U.S. Securities and Exchange Commission (SEC) against the company. The CEO believes that the lawsuit’s ruling is both unjust and incorrect and intends to challenge it. This news comes amidst increasing regulatory scrutiny on cryptocurrency projects.

Title 1: LBRY Plans to Appeal Court Decision on Violating Securities Laws
Title 2: LBRY’s CEO Fights Against SEC’s Ruling, Ready for Round Two

LBRY, the blockchain publishing platform, has announced its intention to appeal a court’s decision that found the company liable for violating federal securities laws. In a court filing, LBRY expressed its disagreement with the ruling and its determination to fight back. CEO Jeremy Kaufman stated that the company is not only appealing for its own sake but also on behalf of other digital asset firms in the United States.

Kaufman believes that the court’s decision is unjust and incorrect, and he accuses the Securities and Exchange Commission (SEC) of using it to harm the broader cryptocurrency industry. LBRY refuses to let the SEC’s ruling go unchallenged and is prepared to take the matter to the next level.

The legal battle between LBRY and the SEC started when the agency accused LBRY of selling its LBRY Credits token to investors without registering it as a security. LBRY countered this claim by arguing that the LBRY Credits were not securities and highlighting their utility within LBRY’s platform. However, Judge Paul J. Barbadoro sided with the SEC, stating that the company failed to provide evidence to reject the SEC’s claims.

LBRY’s decision to appeal comes at a time when the SEC has faced setbacks in other cryptocurrency-related cases. For instance, the SEC recently lost a case against Grayscale when a D.C. appellate court deemed the agency’s denial to convert Grayscale’s Bitcoin Trust into a spot Bitcoin ETF as “capricious.” Additionally, the SEC has encountered difficulties in its ongoing legal battle with Ripple Labs over XRP’s classification as an unregistered security.

While LBRY has chosen to challenge the court’s decision, Kaufman did not comment on whether the outcome of Ripple’s lawsuit would be incorporated into LBRY’s appeal process.

The impact of the lawsuit on LBRY has been significant. The company stated that it would shut down following the court’s final judgment, and it has been open about the adverse effect on its financial standing. The SEC ultimately reduced the financial burdens on LBRY from $44 million to approximately $111,000, recognizing the company’s precarious situation.

Despite the legal challenges, LBRY Credits have experienced some price fluctuations. Over the past week, the token has risen by 35%, reaching $0.0123, while facing an 8.7% decrease over the past day from its highest price since April of the previous year.

In conclusion, LBRY’s determination to appeal the court’s decision showcases its commitment to defending itself and the broader cryptocurrency industry. As the legal battle continues, the outcome will not only impact LBRY but also reverberate within the digital asset landscape as a whole.

Leave a Comment

Google News