The crypto sector's recent Victories in the SEC lawsuits has breathed new life into the defunct blockchain-based file-sharing and payments network LBRY.
SEC Lawsuit against LBRY
The SEC charged LBRY, Inc. in March 2021. The company was sued in federal court for the District of New Hampshire, alleging that its credit tokens (LBCs) are unregistered securities. Accepting the SEC's stand on November 7 last year, the court fined LBRY and banned it from offering cryptographic assets. The final decision was given on July 11, 2023.
Lawsuit ruined LBRY
The SEC had sought a $22 million penalty for LBRY for violating the Securities Act of 1933, but the court's decision left the company dormant. LBRY founder and CEO Jeremy Kauffman declared LBRY dead in January. For this reason, in the final decision dated July 11, the court reduced the penalty amount to $111,614. Even this did not give relief to LBRY.
LBRY Strikes Back
The SEC's legal defences no longer hold water. Following Ripple's victory against the SEC, several decisions came in favour of crypto; for example, the recent Uniswap and Ethereum matters Encouraged by the victory of crypto, the LBRY has appealed against the July 11 ruling to the First Circuit United States Court of Appeals on September 7.