Decentralized online audio-visual platform, with the goal of becoming the LBRY of blockchain Youtube , once attracted the attention of some Taiwanese KOLs in the past, but since March last year, it was sued by the US Securities and Exchange Commission (SEC), and its native token LBC was charged It is an unregistered securities. The legal battle between the two parties ended on the 7th of this month, and LBRY officially announced to the community that it had lost the lawsuit.
Despite the result of the lawsuit, LBRY, Inc., the development team behind LBRY, later stated that it would not give up the project and was continuing to build . However, the official issued its own obituary on Twitter yesterday (30th), accusing LBRY, Inc. of Killed by US law and SEC fines:
Since any information provided privately to the SEC will eventually be leaked, we wanted to give early warning of the fact that LBRY Inc. may close in the near future.
We expect LBRY's mission to continue, but the company itself has been stifled by legal and SEC debt.
At the same time, it continued to point out that "LBRY protocol and blockchain will continue to exist" , but LBRY Inc "must die."
SEC is seeking $20 million fine
LBRY Inc. established the LBRY protocol and blockchain platform to provide a blockchain-based alternative to YouTube, focusing on a less stringent review policy for its hosted video content, and issued LBC tokens to provide its platform with Key utility functions such as tipping, posting, purchasing and upgrading video content.
In a year-long legal battle between LBRY, Inc. and the SEC, the SEC accused LBRY, Inc. of allegedly selling unregistered securities, selling digital assets in the form of LBC tokens between July 2016 and February 2021 for The platform raised funds, earning at least $11 million from token sales.
According to "Decrypt", LBRY, Inc. CEO Jeremy Kauffman revealed that the company does not yet have the exact number of SEC fines, but the regulator is pushing the court to award a $20 million fine.
At present, LBRY said that it is negotiating a settlement with the SEC, but the process is very difficult. The official tweeted on November 29 to update the progress of the negotiations between the two parties, stating that the company has provided the SEC with "everything we have", but the proposal is still being rejected by the SEC. reject. James Filan, a defense lawyer and former federal prosecutor who has long commented on the lawsuit between the SEC and the Ripple development company Ripple Labs, also continued to pay attention to the LBRY case. He questioned whether the SEC's negotiations with LBRY were not smooth because the SEC was seeking stricter regulations on future LBC sales.
let me guess. That's because they want a consent judgment that also includes a specific agreement that every sale, even in the secondary market, is a sale of a security.
In response, the LBRY Inc team simply provided a
Emoticons.
Founder of LBRY: This case may seriously damage the industry
When LBRY, Inc. announced that it lost the lawsuit, Jeremy Kauffman, the founder and CEO of LBRY, warned that the case created an extremely dangerous jurisprudence, making every cryptocurrency possible to become a security in the United States, including Ethereum.
SEC v. LBRY sets a precedent that threatens the entire U.S. cryptocurrency industry. According to the SEC's standards for LBRY, almost all cryptocurrencies, including Ethereum and Dogecoin, are securities, and the future of cryptocurrencies in the United States depends on an organization worse than the SEC: the US Congress.
Kauffman has long argued that the outcome of the case could have sweeping implications for the broader cryptocurrency industry, saying at Messari’s Mainnet conference in September that the facts of the LBRY case would “apply to basically every company in the cryptocurrency industry.” ".
Cointelegraph pointed out that due to the similar nature of these cases to each other, because the SEC has been actively pushing the court to identify LBC and XRP as "securities" in the LBRY and Ripple cases. Given that these are the first major court cases related to cryptocurrencies and securities, their results can be considered an important reference for future rulings.
Further reading: Ripple obtains secret documents! Suspected to contain evidence related to the dictation of "Ethereum is not a security" by former SEC officials
