Blockchain-based file-sharing and payment network LBRY appears to be reversing course on an earlier decision to wind down, deciding instead to fight a federal judge ruling in July that sided with the Securities and Exchange Commission.<\/p>\n
On Sept. 7, LBRY filed a notice of appeal to the United States Court of Appeals for the First Circuit, seeking to appeal the final judgment entered on July 11 that ordered LBRY to pay a civil penalty and barred it from participating in unregistered offerings of crypto asset securities in the future. <\/p>\n
\u201cDefendant LBRY, Inc. now appeals to the United States Court of Appeals for the First Circuit this Court\u2019s final judgment entered on July 11, 2023,\u201d it read. <\/p>\n
The SEC first sued developer LBRY, Inc. in March 2021, claiming that its LBRY Credit token (LBC) was sold as a security under the 1933 Securities Act. <\/p>\n
The U.S. District Court for the District of New Hampshire granted the SEC\u2019s motion for summary judgment against LBRY on Nov. 7, barring the platform from offering \u201cunregistered crypto asset securities\u201d and ordering it to pay a $111,614 civil penalty to the SEC.<\/p>\n
The regulator originally sought a punishment of $22 million, but changed course after conceding the defunct firm couldn\u2019t pay. <\/p>\n
In January, LBRY founder and CEO Jeremy Kauffman told Cointelegraph\u00a0that \u201cLBRY as a company is almost certainly dead.\u201d<\/p>\n
Following the final judgment in July, the firm seemed to admit the same, tweeting: <\/p>\n
\u201cIn accordance with the court\u2019s order and our promises, we expect to spend the next several months winding LBRY Inc. down entirely.\u201d<\/p><\/blockquote>\n