March 28, 2024

SEC filed a lawsuit against blockchain startup LBRY

SEC filed a lawsuit against blockchain startup LBRY

The Securities and Exchange Commission accused New Hampshire-based LBRY of conductingunregistered offer of securities.

LBRY – it is a decentralized content publishing platform. About 10 million people use it. The native token LBRY Credits (LBC) is used to publish and purchase articles.

According to the SEC's complaint, from July 2016 to February 2021, LBRY sold digital securities under the name "LBRY Credits" to numerous investors, including U.S. investors. 

The complaint alleges that LBRY did not fileapplication for registration of the sale, and the law obliges them to go through such a procedure. The company received over $ 11 million in USD, bitcoin and services from buyers who participated in its listing.

SEC complaint filed with a federal district court inNew Hampshire, accuses LBRY of violating 1933 Securities Registration Regulations. The SEC requires an indefinite injunction, divestment and payment of a fine by the company.

The startup team responded to the SEC charges, pointing out their inconsistency and once again emphasizing that LBC tokens are not securities. 

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