• 14 July, 2024
News

LBRY’s Legal Battle Takes a New Turn with Extended Deadline

A recent development has injected new life into the case in the ongoing legal saga between LBRY, the blockchain-based content platform, and the Securities and Exchange Commission (SEC). According to a defense lawyer on the X platform, James K. Filan, the First Circuit Court of Appeals in Boston has granted LBRY an extended deadline, instructing the platform to submit its brief by November 1, 2023.

This decision follows a rollercoaster legal battle that has seen the SEC impose a hefty $22 million penalty on LBRY, later reduced to $111,614. LBRY contested the SEC’s allegations from the outset, arguing that the initial penalty was excessive and based on vastly inflated figures. 

LBRY’s core argument revolved around the notion that the SEC failed to consider the platform’s legitimate operational costs, which were instrumental in their overall financial situation. Facing the specter of a shutdown in December 2022 due to mounting legal pressures, LBRY chose a surprising path forward.

Rather than succumbing to the pressure, LBRY challenged the federal judge’s ruling that favored the SEC, as highlighted in the following X post. Jeremy Kauffman, the CEO of LBRY, also reportedly expressed his belief that the SEC’s decision was unjust and incorrect. Kauffman voiced concerns that the SEC might leverage this ruling to wield a heavy regulatory hammer over the broader cryptocurrency sector.

LBRY’s decision to appeal aligns with a growing trend of cryptocurrency companies standing up against federal regulators. In 2022, attorney John Deaton, known for representing XRP holders in the Ripple-SEC lawsuit, joined the LBRY legal battle as an Amicus Curiae. Naomi Brockwell, a tech journalist interested in LBRY, also entered the legal fray, emphasizing her earnings in LBC tokens while clarifying that she had not cashed out her holdings.

As LBRY prepares to submit its brief by the extended deadline, supporters and skeptics of the cryptocurrency ecosystem are watching with bated breath. This case could set a new precedent in the ever-evolving landscape of cryptocurrency regulation.

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