The firm had earlier disclosed its intention to scale down operations, and the Securities and Exchange Commission reduced its financial penalty from $44M to nearly $111000.
A court filing shows that on Thursday, the firm behind LBRY, a blockchain publishing network, revealed its intention to appeal a court’s verdict that found it guilty of breaching federal securities regulations last year.
Jeremy Kaufman, LBRY CEO, claimed the organization is prepared for another round and is fighting for the rest of the United States’s digital asset firms. He conveyed a written statement, indicating that LBRY is appealing the decision by the Securities and Exchange Commission (SEC) since it was improper and unfair. Further, he asserted that the agency has depicted a vivid intent to utilize the ruling to destroy the cryptocurrency industry further, something that will not be allowed.
LBRY Embroiled in Tokens Versus Security Label by SEC on LBC Credits
Last November, a court in New Hampshire supported the SEC after accusing LBRY, Inc. of selling unregistered LBRY Credits ($LBC) tokens to investors. LBRY pointed to the tokens’ utility on the LBRY platform to argue that the Credits were not securities. Nevertheless, Judge Paul J. Barbadoro established the firm could provide any rational trier of fact to reject assertions by the SEC.
Some crypto advocates claim that since the agency’s win over LBRY, it has acquired numerous black eyes in court. Last month, the watchdog lost to Grayscale following the D.C. appellate court’s finding that the SEC’s earlier failure to change Grayscale’s Bitcoin into a spot Bitcoin ETF was ‘erratic.’
The Securities and Exchange Commission has also experienced some loss in its court fight against Ripple Labs concerning XRP not being a registered security. In July, a judge in New York provided an incomplete ruling stating the token was not essentially a security on its face, and specific public XRP was legal.
LBRY Non-committal on Using Ripple’s Decision in Appeal Against SEC
Kaufman failed to disclose if the company will consider the Ripple lawsuit’s decision as part of its appeal process. Findings by CoinGecko show that over the past week, Library Credits have increased 35% to $00123. Concurrently, the token has experienced an 8.7% drop over the past day, balancing some gains following its attainment of the highest price since April 2022.
LBRY has publicized the lawsuit’s impact on the bottom line and claimed the court’s ultimate verdict would result in its closure. Acknowledging the firm’s close-to-nonoperational status in May, the Securities and Exchange Commission had sought to reduce financial burdens placed on the company from $44M to nearly $111000.
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