- LBRY announces winding down but assures network remains unaffected.
- Deaton suggests the LBRY case should be taught in law schools” across the U.S.
- The legal expert also critiques the SEC for targeting LBRY while ignoring FTX, Celsius, and others.
The winding down of LBRY, a prominent blockchain firm targeted by the U.S. regulator for unregistered security offerings, has attracted the attention of John Deaton, a prominent crypto lawyer.
Deaton reacted to the development by emphasizing the role the U.S. Securities and Exchange Commission (SEC) vs. LBRY case could play in guiding the coming generation of legal counsel.
Deaton remarked, “The LBRY case should be taught in law schools” across the United States. The lawyer believes the case highlights the Howey Test’s application to modern blockchain technologies alongside the regulatory overreach of the SEC.
Furthermore, Deaton criticized the SEC’s choice to pursue legal action against LBRY, which has led to the wreckage of the crypto business. He particularly noted that the SEC’s target of LBRY was faulty, as the crypto business had no allegation of fraud or misrepresentation.
Emphatically, the lawyer argued that the SEC went after an innocent firm while fraudulent crypto businesses, such as FTX, Celsius Network, Voyager, Terra Luna, and Genesis, defrauded the American public in monumental pump-and-dump schemes.
“After millions of dollars were wasted, the SEC got a $130K fine. This case alone proves the SEC is a broken, failed, and inept agency,” Deaton concluded.
Notably, LBRY recently communicated that it is winding down its operations. LBRY noted that while it gradually brings its operation to a complete halt, it reassures that the LBRY network remains unaffected by the development.
Furthermore, the notification stated that LBRY’s platform, Odysee, and other assets will undergo a legal process to settle outstanding debts. LBRY expressed a conviction about Odysee’s bright future despite the challenges.
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