Share this article
Crypto Firm LBRY to Challenge Ruling It Violated U.S. Securities Law
The blockchain-based file-sharing network had indicated it would be winding down after a New Hampshire court ruled in favor of the SEC last November.
Updated Sep 8, 2023, 4:36 p.m. Published Sep 8, 2023, 10:14 a.m.
Crypto startup LBRY filed its intent to appeal a New Hampshire court's decision that it failed to register with the U.S. Securities and Exchange Commission (SEC).
The SEC filed suit in 2022 alleging the blockchain-based file-sharing network had violated federal securities laws with the sale of its native LBRY credits (LBC), which the firm maintained were not securities. A New Hampshire judge ruled in favor of the SEC in November and the final ruling was filed on July 11. Following the ruling, LBRY said it would shut down.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Under the ruling, LBRY must pay a $111,614 penalty. That was revised down from $22 million in May by the regulator citing the company's "near-defunct status." The company was also "permanently restrained and enjoined from" participating, directly or indirectly, in violating federal securities laws or any unregistered crypto securities offering.
"LBRY is appealing the [court's] decision because it is unjust and incorrect," CEO Jeremy Kauffman wrote in an email to CoinDesk. "The SEC has shown clear intent to use this ruling to damage the cryptocurrency industry more broadly. We won't let them."
Blockchain platform Ripple Labs is facing similar SEC allegations over the sale of $1.3 billion in XRP tokens. Legal experts have told CoinDesk that a federal judge's July ruling partially in favor of Ripple – that direct sales of XRP to institutional investors violated securities law, but programmatic sales to retail investors through exchanges had not – could give hope to other firms involved in similar cases.
LBC has dropped about 8.7% in the past 24 hours to $0.012, CoinGecko data shows.
UPDATE (Sept. 8, 15:38 UTC): Adds comment from LBRY CEO Jeremy Kauffman in penultimate paragraph.
More For You
알아야 할 것:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
French Banking Giant BPCE to Roll Out Crypto Trading for 2M Retail Clients
The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq.
What to know:
- French banking group BPCE will start offering crypto trading services to 2 million retail customers through its Banque Populaire and Caisse d’Épargne apps, with plans to expand to 12 million customers by 2026.
- The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq, with a €2.99 monthly fee and 1.5% transaction commission.
- The move follows similar initiatives by other European banks, such as BBVA, Santander, and Raiffeisen Bank, which have already started offering crypto trading services to their customers.
Top Stories
