Blockchain Platform LBRY Ordered To Present Brief In SEC Lawsuit By November 1

Key Points:

• LBRY was given until November 1, 2023, to appeal the SEC penalty over the LBC token.
• SEC sought $22 million, reduced to $111,614; LBRY disputes the calculation.
• The cryptocurrency industry sees evolving regulatory dynamics; LBRY joins Ripple and Grayscale in legal battles.

The First Circuit Court of Appeals in Boston has issued a deadline of November 1, 2023, for LBRY, a blockchain-based content-sharing platform, to submit its brief in an ongoing legal clash with the U.S. Securities and Exchange Commission (SEC) regarding the nature of its LBRY Credit token (LBC).

LBRY Ordered To Present Brief in Crypto Legal Saga

Initially, the SEC had sought a hefty $22 million penalty from LBRY, which was later revised down to $111,614 due to the company’s financial limitations.

LBRY had previously filed a notice of appeal challenging a prior court ruling that mandated the payment of a civil penalty for alleged violations of the 1933 Securities Act, as stated by the SEC. This legal battle commenced in March 2021, but the ruling, which ordered LBRY to pay a civil penalty exceeding $111,000, came later after it became apparent that the company could not meet the initial demand.

In a reversal of their earlier decision, LBRY chose not to wind down LBRY Inc. and is now seeking to overturn the final verdict in the case, contending that the SEC’s calculations were flawed and unjust. They argue that the calculations did not factor in LBRY’s legitimate operational expenses. In December 2022, LBRY expressed concerns about a potential shutdown, largely due to mounting legal burdens and SEC-induced debts.

The Industry’s Ongoing Battle with Regulators

This development by LBRY aligns with recent successes that the cryptocurrency industry has achieved in legal battles against federal regulators. Notably, companies like Ripple and Grayscale have also secured victories in their legal tussles with U.S. regulators, underscoring the evolving dynamics of the cryptocurrency industry’s relationship with regulatory bodies.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.