The SEC Wins Case After a Long Battle With Final Court Ruling

The SEC just won its battle against LBRY.
LBRY must pay a fine of $111,614 and cease many operations.
This is troubling news as the SEC vs Ripple case draws near.

In a significant development, a federal court has granted the Securities and Exchange Commission’s (SEC) motion for summary judgement against LBRY, Inc. On this, the court found LBRY liable for violating Section 5 of the Securities Act of 1933.

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The court’s decision, as it mentions in a final judgement, orders LBRY to permanently restrain and enjoin from violating Section 5 of the Securities Act. This includes engaging in the sale or delivery of securities without a registration statement or offering to sell securities without a filed registration statement.

Furthermore, the final judgement further extends its binding effect to LBRY’s officers, agents, employees, and attorneys. It also extends to any other individuals in active concert or participation with LBRY. This ensures that all parties associated with LBRY are subject to the court’s orders.

In addition, the court permanently restrains and enjoins LBRY from participating in any unregistered crypto asset securities offering under Section 21(d)(5) of the Exchange Act. This provision prohibits LBRY from engaging, directly or indirectly, in any offering of crypto assets that qualify as securities without proper registration.

LBRY Charged With $111,614 Civil Penalty

As part of the final judgement, LBRY is also required to pay a civil penalty of $111,614 to the SEC within 30 days. The payment should be made to the Securities and Exchange Commission’s Enterprise Services Center Accounts Receivable Branch, accompanied by specific case information.

In a nutshell, LBRY is urged to comply with the payment terms. Failure to do so may result in the SEC enforcing the judgement through appropriate collection procedures, including civil contempt. Moreover, the court retains jurisdiction over the case to ensure the enforcement of the terms outlined in the final judgement.

Lastly, this final judgement serves as a reminder that companies operating in the securities space must adhere to regulatory requirements and comply with the provisions of the Securities Act to protect investors and maintain market integrity.

This is a hard blow to the gut for the crypto community. Presently, many crypto entities are fighting the SEC in long-fought battles. Coinbase and Ripple are also locking horns with the SEC. Soon we shall find out if Ripple will walk away victoriously like Binance did.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.