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Blockchain-based file-sharing and fee community LBRY seems to be reversing course on an earlier determination to wind down, deciding as a substitute to combat a federal decide ruling in July that sided with the Securities and Alternate Fee.
On Sept. 7, LBRY filed a discover of enchantment to the US Court docket of Appeals for the First Circuit, looking for to enchantment the ultimate judgment entered on July 11 that ordered LBRY to pay a civil penalty and barred it from collaborating in unregistered choices of crypto asset securities sooner or later.
“Defendant LBRY, Inc. now appeals to the US Court docket of Appeals for the First Circuit this Court docket’s remaining judgment entered on July 11, 2023,” it learn.
LBRY has filed a Discover of Enchantment 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 Court docket for the District of New Hampshire granted the SEC’s movement for abstract judgment towards LBRY on Nov. 7, barring the platform from providing “unregistered crypto asset securities” and ordering it to pay a $111,614 civil penalty to the SEC.
The regulator initially sought a punishment of $22 million, but changed course after conceding the defunct agency couldn’t pay.
In January, LBRY founder and CEO Jeremy Kauffman told Cointelegraph that “LBRY as a company is almost certainly dead.”
Following the final judgment in July, the firm seemed to admit the same, tweeting:
“In accordance with the court docket’s order and our guarantees, we count on to spend the following a number of months winding LBRY Inc. down fully.”
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 attainable change in course. It additionally comes amid a variety of high-profile crypto trade victories towards the federal regulator, together with Ripple and Grayscale.
Cointelegraph contacted LBRY for additional feedback however had not obtained a response on the time of publication.
Journal: Crypto regulation — Does SEC Chair Gary Gensler have the final say?
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