- LBRY lost a year-long legal fight with the SEC last month.
- SEC Claimed the firm issued and sold LBRY tokens which it considers securities.
After losing a battle with the SEC earlier this month, the business behind the blockchain publishing platform LBRY published a heartfelt tweet yesterday. Tweets sent by LBRY, Inc. on Monday said that the company had been “killed by legal and SEC debts.” A follow-up tweet from the firm clarified that the “LBRY protocol and blockchain will continue” even if LBRY Inc “must die.”
It was announced earlier last month that LBRY, Inc., the company behind the LBRY protocol and blockchain, had lost a year-long legal fight with the SEC. The SEC is seeking fines of $20 million, according to LBRY, Inc. CEO Jeremy Kauffman, although the business does not yet have a precise amount.
Claim of Unregistered Securities
The regulatory agency has claimed that the corporation issued and sold LBRY tokens which it considers as unregistered securities. LBRY, Inc. said that its native LBC token “functions as a digital currency that is an essential component of the LBRY Blockchain.” Denying that the tokens were in fact securities. As of the 7th of November, Judge Peter Barbadoro ruled in favor of the SEC.
The LBRY platform is a blockchain-based service that eliminates the need for middlemen when users are sharing video content. It has previously touted its lack of censorship and compared itself to YouTube in a similar vein.
The Securities and Exchange Commission has claimed that from at least July 2016 through February 2021. LBRY, Inc. traded LBC tokens to generate money for the platform. The SEC filed charges against LBRY in March of last year. Claiming the company had illegally collected $12,250,000 from token sales without first registering them as securities.
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