US regulator accuses Project Lbry of selling unregistered securities, CEO denies accusations
The Securities and Exchange Commission (SEC) filed a lawsuit against the blockchain-based payment and file sharing network called Lbry last week, the US regulator having accused Lbry Inc. of selling unregistered securities ties. However, the CEO of Lbry denies that the project's native tokens are securities and says the logic of the SEC will jeopardize a number of public blockchain projects.
US regulator accuses Lbry of selling unregistered securities
US regulators financiers have filed a lawsuit against another blockchain as the SEC claims, the company Lbry Inc. sold unregistered securities. The SEC used the Securities Act of 1933 to tackle a certain issueshadow of blockchain projects and now says LBC tokens are unregistered securities. The SEC claims that the LBC tokens "were offered and sold as investment contracts and, therefore, as securities". Regulators claim the company "pooled the money" and also claim that Lbry Inc. is also the largest holder of AML.
SEC prosecutors believe the company violated securities laws and should have you registered AML tokens with the regulator. The SEC seeks a permanent injunction and restitution of allegedly ill-gotten gains. Lbry Inc. CEO Jeremy Kauffman disagrees with the SEC's complaint and pointed out in a recent interview that the company does not hold an Initial Coin Offer (ICO). "According to the logic put forward by the SEC ... every actively developed blockchain is in danger, in particular Ethereum ", a souligne Kauffman.
Lbry CEO added:
Lbry CEO says the case could crush the crypto industry
When the complaint was filed by the US regulator, discussions on the matter began to resume on social media and crypto forums. "I bet the real reason Lbry is under attack by the SEC is not at all the reason given ", the host of the YouTube show "Colin Talks Crypto tweeted . "I bet it's because Lbry offers censorship-resistant video sharing of content that the government wants to censor. " In 2020 and through 2021, the Lbry platform swelled after than Youtubecensored and misrepresented a number of people on Covid-19 news and the recent Trump fiasco.
According to Jeremy Kauffman's recent interview, he spoke with crypto and blockchain supporters to rally against the SEC complaint. "If Lbry loses this case," Kauffman insisted. "It will cripple the cryptocurrency industry and create huge disincentives to start these businesses in the United States." Any cryptocurrency that is actively developed would likely require substantial, costly and intrusive regulatory compliance with every exchange, ”he added.
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