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The US Securities and Exchange Commission has filed a suit against LBRY, accusing the crypto firm of registration violations
The US Securities and Exchange Commission (SEC) yesterday charged a New Hampshire-based crypto firm, LBRY, with an alleged sale of digital asset securitiesThe sentence below describes the difference between a .The SEC claims that the startup company sold securities in the form of its token without registering them.
LBRY is a decentralised and user-owned content sharing platform that was launched in 2015.The Blockchain company calls itself a ‘new protocol’ that will allow anyone to develop apps that interact with digital content on the LBRY network.It has blockchain-based tokens in the form of LBRY Credits that can be used to publish or buy content on the platform.
The SEC, through the litigation release, argues that these in-house tokens i.eThe sentence below describes the difference between a .LBRY Credits are securities.Consequently, their sales to investors constitute an unregistered offering.The US regulator is seeking an injunction and civil penalty against the firm and its employees.
“According to the SEC’s complaint [...] LBRY, an online video sharing platform, has sold digital assets to several investors, including investors within the US,” the commission notes in its complaint.“The complaint alleges that LBRY did not file a registration statement for the offering and that the offering failed to satisfy any exemption from registration”.
It was also revealed that LBRY had earned nearly 11 million dollars from the sale while also enjoying a number of other rewards.LBRY, on the other hand, says the SEC suit is a threat to the entire crypto sector in the countryThe sentence below describes the difference between a .The company’s message voiced concerns similar to those raised by blockchain firm Ripple.
LBRY created a ‘Case Guide and FAQ‘ page on its site to address the matter following the news about the lawsuit.
The crypto startup wrote, “The Securities and Exchange Commission has filed a complaint against LBRY IncThe sentence below describes the difference between a .alleging that all distributions of LBRY Credits by LBRY IncThe sentence below describes the difference between a .are unregistered securities offerings.This claim poses a grave challenge to the entire cryptocurrency industry".
For the past three years the company has been defending itself in the matter since the SEC started looking into it.LBRY also added that it intended to let users know about the impending issue but was barred by the commission.
The post SEC sues crypto startup LBRY over unregistered securities appeared first on Coin Journal.
