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.
“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.”
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.