US SEC Has Sued Crypto Platform LBRY For Selling Unregistered Securities
Securities and Exchange Commission has taken action against LBRY for not registering the securities offerings. SEC claims that LBRY is a crypto firm that has sold unregistered securities.
LBRY is a decentralized and global platform with more than 10 million users. The notable thing about this platform is that it isn’t controlled by any particular institution but is a decentralized platform that is owned, used, and run by its users. LBRY is a blockchain-based platform that facilitates its operation by LBRY-credits, also known as blockchain-based tokens. This network also offers websites for video-sharing frequently used by Odysee and LBRY.tv, which are alternative decentralized platforms against Youtube. For using this platform, people have to pay LBRY credits to prospect the content uploaded on the websites.
Securities and Exchange Commission (SEC) stated that LBRY has been selling its tokens to clients for investment and trading contracts even before establishing the blockchain network. Moreover, LBRY also assured the customers that in coming times the price value of the tokens is also going to spike as well.
Today, the Securities and Exchange Commission (SEC) filed the petition against LBRY in United States District Court that this platform has received around $11 million in USD, BTC and there were some other significant services as well that it got from purchasers who took part in those offerings. Moreover, the Securities and Exchange Commission (SEC) claimed that according to the Security Act approved in 1933, unregistered selling of LBRY credits and securities is a violation of the act.
According to the documents released by the court after listening to the petition submitted on Monday, LBRY, a blockchain content sharing platform, is accused of violating the act of 1933 as they have been selling and trading the unregistered securities of million dollars to the investors, which began in 2016.
LBRY flourished its network by the use of capital which raised the sales of LBRY-credits which were used to pay for the operational costs for the project to grow the network. Securities and Exchange Commission also mentioned in the complaint that LBRY is expected to get maximum profits in the LBRY-Credits (LBC) by any means of appreciation as LBRY is actually the biggest platform holding the LBC.
It is to seek a long-lasting admonition or prohibition against the corporate and its workers along-with disgorgement and civil penalties.