- LBRY, a blockchain-based file-sharing and payment network, plans to appeal July’s federal court ruling in the SEC’s lawsuit against LBRY.
- Crypto lawyer Bill Morgan expressed strong support, urging LBRY not to give up.
- LBRY faced a federal judge’s ruling in July that favored the SEC, imposing a significant civil penalty.
Blockchain-based file-sharing and payment network LBRY has received widespread support after it announced its intention to appeal after a federal judge ruled in favor of the United States Securities and Exchange Commission (SEC) in the regulator’s lawsuit against LBRY in July.
Bill Morgan, a crypto lawyer well-known in the industry, expressed his unwavering support for LBRY. In his tweet, he urged LBRY not to give up, assuring them that the crypto community, especially LBC token holders, stood firmly by their side. He further added that he had always believed the initial judgment was unjust. LBRY also received support from John E Deaton and his crypto firm, Crypto Law.
Up until this point, LBRY had been facing the aftermath of a federal judge’s ruling in July. The judgment favored the SEC, directing LBRY to pay a significant civil penalty and prohibiting it from participating in unregistered offerings of crypto asset securities in the future. The decision was a pivotal moment in LBRY’s history.
However, LBRY decided to file a notice of appeal with the United States Court of Appeals for the First Circuit, signaling its intent to challenge the final judgment rendered on July 11. LBRY, Inc. filed its notice of appeal to the United States Court of Appeals for the First Circuit on September 7.
The appeal document clearly stated, “Defendant LBRY, Inc. now appeals to the United States Court of Appeals for the First Circuit this Court’s final judgment entered on July 11, 2023.”
The legal saga began in March 2021, when the SEC filed a lawsuit against LBRY, alleging that its LBRY Credit token (LBC) should be classified as a security under the 1933 Securities Act.
LBRY’s decision to appeal this judgment marks a significant shift in its strategy. It arrives at a time when the crypto industry has witnessed several high-profile victories against the SEC, most notably in the cases of Ripple and Grayscale.