Blockchain Corporation LBRY, Inc. The SEC said that the lawsuit against her threatens many of the cryptocurrency industry, because she recognizes most of the tokens as securities.
The Securities and Exchange Commission (SEC) reviewed the publishing platform LBRY, Inc. The list is blockchain-based as part of a three-year implementation that began in May 2018.
According to a complaint filed by the Securities and Exchange Commission, the platform sold unregistered securities through multiple channels, including institutional investors and platform users between 2016 and 2020.
The supervisor is seeking a standing order so that the company does not sell more tokens, pays all funds received with interest, and pays an undisclosed amount in the form of civil fines.
LBRY has developed a decentralized video sharing platform called Odysee that allows viewers to “earn cryptocurrency to watch videos” and creators to earn LBRY Credits for their work. Since 2016, 13 million LBC tokens have been sold for $ 5 million in Bitcoin. The Securities and Exchange Commission said in a press release that the total was $ 11 million, including US dollars and the services of bidders.
According to LBRY, although it did not make an initial coin offering (ICO) and the SEC did not report fraud, the rejection by the decision committee was denied:
“The Securities and Exchange Commission refused to introduce conditions that would allow US citizens to exchange tokens or allow LBRY Inc to continue working. We were ready to give them a pound of meat, but they were only interested in our heads. ”
Despite spending “more than a million dollars in legal fees” and significant efforts of “several thousand hours with team members” in the investigation, the company did not back down, stating, “The US Securities and Exchange Commission is pushing for a tough and disastrous new standard , which will be for almost all blockchain tokens.
“Classifying all actively developed blockchain tokens as securities would be a bureaucratic nightmare for American citizens and companies operating in the United States.”
A petition on the helplbrysavecrypto.com website with over 6,700 signatures to date calls on the SEC to end this case and set clear standards for the US cryptocurrency industry.
LBRY claims that when they asked the SEC how to act legally, they were told that the regulator could not advise on this, and could only be said that they were breaking the law.
However, the company said that if the SEC manages to shut down LBRY, Inc., the LBRY and ecosystem will remain intact as it is completely decentralized with “hundreds of people on six continents,” most of whom are not LBRY employees, and are contributing. online in 2020.