New Hampshire Court Sides With SEC in Lawsuit Against LBRY, Project's Team Says Loss Sets a 'Dangerous Precedent'
The U.S. Securities and Exchange Commission (SEC) has won a court case against the blockchain-powered publishing platform LBRY. According to a New Hampshire district court ruling, Judge Paul Barbadoro agreed with SEC that the projects native asset LBC was considered an investment contract or a transferable share representing a certificate of interest. On Twitter, LBRY said the language used to sway the courts decision sets an extraordinarily dangerous precedent.
U.S. Regulator Wins Judgement Against Decentralized Blockchain Platform LBRY
According to court documents, the U.S. regulatory watchdog, the Securities and Exchange Commission (SEC), has won a case where it argued that LBRY sold an unregistered security that violates section 5 of the Securities Act of 1933. Furthermore, the SEC seeks injunctive relief from the alleged proceeds of LBRYs LBC token.
Despite LBRY arguing that the blockchain token was not a security, but rather an essential component of the LBRY blockchain network, Judge Paul Barbadoro granted the SECs motion for summary judgment. The New Hampshire District Courts approved summary judgment insists:
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