Blockchain firm files notice of appeal against SEC

Blockchain-based file-sharing and cost community LBRY could also be reversing course on an earlier resolution to wind down, submitting a discover of enchantment towards a federal choose ruling in July that sided with the Securities and Change Fee.

On Sept. 7, LBRY filed a discover of appeal to america Courtroom of Appeals for the First Circuit, looking for to enchantment the ultimate judgment entered on July 11, 2023, the place LBRY was ordered to pay a civil penalty and barred from taking part in unregistered choices of crypto asset securities sooner or later.

“Defendant LBRY, Inc. now appeals to america Courtroom of Appeals for the First Circuit this Courtroom’s closing judgment entered on July 11, 2023,” it learn.

LBRY has filed a Discover of Attraction towards the SEC. pic.twitter.com/Zp9S0TP0Qw

— LBRY (@LBRYcom) September 7, 2023

The SEC first sued developer LBRY, Inc. in March 2021, claiming that its LBRY Credit score token (LBC) was bought as a safety below the 1933 Securities Act.

The U.S. District Courtroom for the District of New Hampshire granted the SEC’s movement for abstract judgment towards LBRY on Nov. 7, which barred the platform from providing “unregistered crypto asset securities” and ordered it to pay a $111,614 civil penalty to the SEC.

The regulator initially sought a punishment of $22 million however revised it after conceding the defunct agency couldn’t pay.

In January, founder and CEO of LBRY Jeremy Kauffman told Cointelegraph “LBRY as an organization is nearly definitely useless.”

Following the ultimate judgment in July, the agency appeared to confess the identical, tweeting:

“In accordance with the courtroom’s order and our guarantees, we count on to spend the following a number of months winding LBRY Inc. down solely.”

Associated: Bad news for Ripple? LBRY judge passes ruling on if secondary crypto sales are securities

Nonetheless, LBRY’s most up-to-date transfer seems to be a doable change icourse. It additionally comes amid quite a few high-profile crypto business victories towards the federal regulator together with Ripple and Grayscale.

Cointelegraph contacted LBRY for additional feedback however had not acquired a response on the time of publication.

Journal: Crypto regulation — Does SEC Chair Gary Gensler have the final say?