LBRY, the blockchain-based network for file sharing and payment, has gone off course on an earlier decision to wind down- and has decided to fight the federal judge ruling in July- that ended up siding with the Securities and Exchange Commission.
On the 7th of September, the company filed a notice of appeal to the United States Court of Appeals for the very First Circuit, where it sought to appeal the final judgment that was entered on the 11th of July- and which further ordered LBRY to put out a civil penalty, and further barred it from ever participating in unregistered offerings of the crypto asset securities in the future. It read that the Defendant had now appealed to the United States Court of Appeals for the First Circuit that the final judgment of the Court was entered on the 11th of July 2023.
LBRY Has Countered The Filing Made By The District Judge
The SEC first sued LBRY in March of 2021, claiming that the very LBRY Credit Token had been sold as a security under the Securities Act of 1933. The US District Court for the District of New Hampshire had, then, granted the motion of the SEC for summary judgment against the network on the 7th of November, where they barred the group from putting out unregistered crypto asset securities and ordered it to pay a civil penalty of $111,614 to the SEC.
SEC had initially looked at a punishment of $22 million but then went on to change course after it conceded that the defunct firm would not be able to pay. In January, the CEO and founder of the network, Jeremy Kauffman informed Cointelegraph that LBRY as a company was almost on its last legs. After the final judgment came in July, the firm went on to admit the same, stating that they would be spending the next few months winding LBRY Inc. down entirely.