In another lawsuit closely followed by XRP investors, the court ruled that blockchain platform LBRY’s LBC token is a “securities”. The verdict in the case, which was heard in New Hampshire court, came out today. The ruling stated that any claim that LBRY’s LBC token is a security cannot be dismissed by any responsible judge.
In the statement made by LBRY after the decision, “We lost. We apologize to everyone.” it was said. LBRY continued as follows:
“We will heal our wounds for a while, but we will not give up. We have a brilliant team, tens of millions of content, hundreds of thousands of creators and one of the most popular Web3 apps in the world. Good days await us.”
On the other hand, LBRY argued that the decision sets a dangerous precedent for other cryptocurrencies.
“The language used in the court ruling sets a dangerous precedent in the US, which considers every cryptocurrency, including ETH, to be a “securities.”
The lawsuit in question was filed in March 2021, three months after the lawsuit against Ripple. The SEC argued that LBRY has been selling unregistered securities to investors since 2016. Allegedly, LBRY made millions of dollars in sales this way. LBRY was an open-source protocol where participants could share content without fear of punishment. According to the SEC; LBC tokens were sold as investment contracts in exchange for US dollars and other non-monetary contributions.