News

LBRY Faces Defeat in SEC vs LBRY Case, Tweets Wont Give Up

Last March, the SEC filed a lawsuit against LBRY on grounds that it had sold its native LBC token in violation of federal securities laws.
Published by
LBRY Faces Defeat in SEC vs LBRY Case, Tweets Wont Give Up

In March 2021, the SEC filed a lawsuit against LBRY, claiming that the firm had sold LBC tokens in violation of the law by failing to register with the agency. And, that these tokens were, in fact, securities. In response, LBRY argued that their tokens were not securities and that the SEC violated the company’s right to due process by failing to provide fair notice that the sale of LBC was subject to securities law.

This Monday, a New Hampshire judge ruled that the cryptocurrency firm LBRY broke the law when it sold its native LBC coins without first registering with the U.S. Securities and Exchange Commission (SEC).

Federal Judge Paul Barbadoro, of the District Court for the District of New Hampshire, concluded by saying

“No reasonable trier of fact could reject the SEC’s contention that LBRY offered LBC as a security, and LBRY does not have a triable defense that it lacked fair notice.”

After the verdict was announced, LBRY’s official Twitter account heartfully tweeted that they had lost, and that they were sorry.

Pointing towards the full ruling in the SEC vs LBRY case, they further stated that,

The language used here sets an extraordinarily dangerous precedent that makes every cryptocurrency in the US a security, including Ethereum.

The future plans of the LBRY platform are still unclear as dozens of creators, artists, and viewers remain stranded.

 

 

Advertisement

Share
Pratik Bhuyan

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now - he has seen it all.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Polymarket Hits $20B in Trading Volume, Announces Plans for Massive POLY Token Airdrop

Polymarket has surpassed $20 billion in total trading volume and has confirmed plans to launch…

October 25, 2025
  • News

James Wynn Takes XRP Long Bet After Ripple Prime Announcement

Ripple's native cryptocurrency XRP is currently defying the crypto market downturn, gaining 5% today, and…

October 25, 2025
  • News

Nasdaq-Listed Bonk Holdings Makes First Major Purchase of $32M, Nears 3% of Total Supply

Bonk Holdings Inc. (BNKK) has made its first significant acquisition of $32 million worth of…

October 25, 2025
  • News

Binance-based Meme Coin GIGGLE Fund Shoots 145% on Exchange Listing News

Giggle Fund, the charity-focused meme coin on Binance Smart Chain (BSC), has surged a massive…

October 25, 2025
  • News

ASTER Gets Major Boost as Project Launches Token Buyback Program, Expert Predicts $10 Spike

ASTER has announced a token buyback program in a bid to stabilize token prices and…

October 25, 2025
  • News

Trump Picks SEC Crypto Counsel Michael Selig to Lead CFTC Amid Crypto Oversight Push

Michael Selig is the latest candidate who has been chosen by President Donald Trump to…

October 25, 2025