Blockchain-based file-sharing and payment network LBRY has decided to appeal a federal judge ruling that sided with the Securities and Exchange Commission (SEC), instead of winding down as previously planned.
LBRY filed a notice of appeal on September 7 to the United States Court of Appeals for the First Circuit. The appeal seeks to challenge the final judgment entered on July 11, which ordered LBRY to pay a civil penalty and prevented it from participating in unregistered offerings of crypto asset securities in the future.
The SEC sued LBRY, Inc. in March 2021, claiming that its LBRY Credit token (LBC) was sold as a security under the 1933 Securities Act. The U.S. District Court for the District of New Hampshire granted the SEC’s motion for summary judgment against LBRY in November 2021, imposing a ban on offering unregistered crypto asset securities and a civil penalty of $111,614.
LBRY’s founder and CEO, Jeremy Kauffman, previously stated that the company was almost certainly dead. However, LBRY’s decision to appeal suggests a change in course and follows recent victories by other crypto industry players against the SEC.
Coinpostman contacted LBRY for comment but has not received a response at the time of publication.
Key Points
- Blockchain firm LBRY has filed a notice of appeal against the SEC.
- The appeal challenges a federal judge ruling that ordered LBRY to pay a civil penalty and prevented it from participating in unregistered offerings of crypto asset securities.
- LBRY’s decision to appeal indicates a change in course from its previous plan to wind down.
- The SEC sued LBRY in March 2021, alleging that its LBRY Credit token was sold as a security.
- LBRY’s appeal comes in the wake of recent victories by other crypto industry players against the SEC.
