Carlos Fernandes In a legal document submitted recently, LBRY, the blockchain-centric publishing platform, has indicated its plan to contest a decision by a district court in New Hampshire. The court’s November 2022 judgment agreed with the U.S. Securities and Exchange Commission (SEC), ruling that LBRY had positioned its digital tokens as investment contracts or securities.
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Legal Battle Over Unregistered Cryptocurrencies: LBRY Takes on SEC Amid Expanding Regulatory Oversight
LBRY has formally expressed its intention to challenge the decision rendered by U.S. District Judge Paul Barbadoro, which found that the company had offered unregistered securities to the public. On November 7, 2022, the court approved the SEC’s motion for summary judgment, declaring that LBRY, Inc. was in violation of Section 5 of the Securities Act of 1933.
Following this judgment, LBRY was subjected to a penalty of $111,614 and was indefinitely barred from making any security offerings within the United States. LBRY holds the distinction of being the inaugural cryptocurrency project to directly confront the SEC in a case of this nature.
In the aftermath, the SEC has initiated a wide array of enforcement actions, designating numerous cryptocurrency assets as “unregistered securities.” The collective market capitalization of these purportedly unregistered crypto assets currently exceeds $78 billion. Within the SEC’s comprehensive list of scrutinized entities, LBRY ranks as the 36th largest in terms of market capitalization.
Timothy McLaughlin, an attorney at the law firm Shaheen & Gordon, filed the notice on LBRY’s behalf indicating their intention to appeal the court’s decision. LBRY publicized its decision to file a Notice of Appeal against the SEC through the social media platform formerly known as Twitter.
We welcome your insights and perspectives on LBRY’s decision to appeal against the New Hampshire court’s ruling in the comments section below.
Frequently Asked Questions (FAQs) about LBRY SEC Lawsuit
What is the core issue between LBRY and the U.S. Securities and Exchange Commission (SEC)?
The core issue is that a district court in New Hampshire agreed with the SEC’s assessment that LBRY offered its digital tokens as investment contracts or securities, thereby violating Section 5 of the Securities Act of 1933.
What actions were taken by the court against LBRY?
The court imposed a penalty of $111,614 on LBRY and indefinitely barred the company from making any security offerings within the United States.
What is LBRY’s response to the court’s decision?
LBRY has formally expressed its intention to challenge the court’s ruling. Timothy McLaughlin, an attorney at the law firm Shaheen & Gordon, filed the notice of intent to appeal on LBRY’s behalf.
Where does LBRY rank in terms of market capitalization among entities scrutinized by the SEC?
Among the entities scrutinized by the SEC for unregistered crypto assets, LBRY is the 36th largest in terms of market capitalization.
What is the broader implication of this case on the cryptocurrency market?
The case is significant as LBRY is the first cryptocurrency project to directly confront the SEC in such a legal battle. Moreover, the SEC has since initiated numerous enforcement actions, targeting a variety of crypto assets as “unregistered securities.”
How did LBRY publicize its intention to appeal the court’s decision?
LBRY announced its decision to file a Notice of Appeal against the SEC through a social media platform formerly known as Twitter.
What is the current combined market capitalization of alleged unregistered crypto assets under SEC scrutiny?
The collective market capitalization of these purportedly unregistered crypto assets currently exceeds $78 billion.
More about LBRY SEC Lawsuit
- U.S. Securities and Exchange Commission (SEC)
- Securities Act of 1933
- LBRY Official Website
- District Court of New Hampshire
- Shaheen & Gordon Law Firm
- SEC’s Enforcement Actions in Crypto Sector
- Recent Court Rulings on Cryptocurrencies
- Overview of Market Capitalization in Crypto
10 comments
So the court greenlit the SEC request. Makes me wonder if the system is biased against new tech like blockchain.
This case will set a precedent for sure. If LBRY wins, it’ll change the whole game for unregistered crypto assets.
Woah, LBRY’s takin on SEC? this is gonna be big guys. Any ideas what happens if they win the appeal?
36th in market cap but 1st in courage lol. Go LBRY!
LBRY is 36th in market cap but trying to fight the SEC? Sounds like a long shot to me.
Finally someone stepping up against the SEC. but $111,614 fine, thats a lot of dough… can LBRY even afford it?
Given the penalties, and the fact that they’re barred from US markets, they must be really confident to file an appeal.
Did anyone else see this coming? The scrutiny on crypto’s been tightening for a while now.
I wonder what the social media platform “formerly known as Twitter” is now called? Anyone?
Big implications for crypto if LBRY wins or loses. I’ll be keepin an eye on this one for sure.