Crypto startup LBRY filed to appeal a court’s ruling that it failed to register with the U.S. Securities and Exchange Commission (SEC).
In 2022, the SEC alleged that the blockchain-based file-sharing network violated federal securities laws with the sale of its native LBRY credits (LBC). LBRY has maintained that the tokens 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.
The judge ruled that LBRY must pay a $111,614 penalty. That was revised down from $22 million in May by the regulator citing the company’s “near-defunct status.”
LBRY shared its intension to fight the ruling on its X (formerly Twitter) account Thursday.