LBRY fires back at SEC over ‘aggressive and disastrous’ securities complaint



Blockchain firm LBRY, Inc. has hit back at the Securities and Exchange Commission, saying a complaint filed towards it threatens a lot of the crypto trade as a result of it could outline most tokens as securities. 

The SEC has been trying into the blockchain-based publishing platform LBRY, Inc. as a part of a three-year investigation that began in May 2018.

According to the complaint filed by the SEC, the platform is alleged to have offered unregistered securities throughout a number of avenues together with to institutional buyers and platform customers between 2016 and 2020.

The regulator is looking for a everlasting injunction to stop the corporate from promoting extra tokens, disgorgement of all funds obtained with curiosity, and to pay an undisclosed quantity in civil penalties.

LBRY developed a decentralized video sharing platform referred to as Odysee that permits viewers to “earn cryptocurrency for watching videos” and for creators to earn LBRY Credits for his or her work. Since 2016, 13 million LBC tokens have been offered for $5 million in Bitcoin. A press launch from the SEC states the whole quantity raised was $11 million, together with USD and companies from purchasers who participated in its providing.

According to LBRY, whereas it didn’t conduct an preliminary coin providing (ICO) and the SEC just isn’t alleging fraud, its makes an attempt to settle have been rejected by the Commission:

“The SEC declined to offer any terms that would have made it viable for U.S. citizens to exchange tokens or to allow LBRY Inc to continue to operate. We were willing to give them a pound of flesh, but they were only interested in our head.”

Despite already spending “more than $1 million on legal fees” and the momentous effort of “several thousand hours of team members’ time” in the course of the investigation, the corporate just isn’t backing down, stating: “The SEC is advancing an aggressive and disastrous new standard that would make almost all blockchain tokens securities.”

“Classifying all actively-developed blockchain tokens as securities will be a bureaucratic nightmare for United States residents and businesses operating in the US.”

A petition on its web site “helplbrysavecrypto.com” with greater than 6,700 signatures thus far calls on “the SEC to drop this case and establish clear standards for the cryptocurrency industry in the United States.”

LBRY claims that when it requested the SEC the way it might function legally, it was instructed that the regulatory physique couldn’t advise on that and might solely say that they have been breaking the legislation.

However the agency said that ought to the SEC achieve shutting down LBRY, Inc., the LBRY platform and ecosystem will stay unaffected as it’s absolutely decentralized with “hundreds of people across six continents,” most of which aren’t LBRY workers, contributing to the community in 2020.