U.Today - In an interesting development in the , the First Circuit Court of Appeals in Boston directed the blockchain startup to file its brief by Nov. 1, 2023.
This action follows a protracted legal battle between the Securities and Exchange Commission (SEC) and LBRY over the nature of its LBRY Credit (LBC).
The SEC prevailed in summary judgment against LBRY; the blockchain business was dealt another setback on July 11, when the final ruling upheld the SEC's victory.
In what might be deemed punitive, LBRY was permanently restrained and enjoined from participating, directly or indirectly, in any unregistered crypto asset securities offering. The final judgment further ordered LBRY to pay a civil penalty of $111,614 to the SEC within 30 days of the judgment's entry.
By its undertakings to the court, LBRY announced its plans to wind down and divest itself of its remaining premined LBC shortly after the final verdict.
However, in a bold move lauded by the community and the rest of the crypto industry, LBRY filed a notice of appeal on Sept. 7, addressing the July 11 final verdict given by the court.
This move will take its first significant stride as LBRY prepares for a legal showdown on Nov. 11 when it submits its appeal brief.
The appeal is gaining support from legal experts in the crypto community. In this regard, XRP holders' attorney, John Deaton, has submitted a Notice of Appearance on behalf of amicus curiae Naomi Brockwell.
The bold move by LBRY in appealing its case is inspired by the landmark July 13 judgment in the Ripple litigation, which determined that XRP in and of itself does not qualify as a security.