LBRY requests briefing schedule in court case with US SEC

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Crypto Regulation
LBRY requests briefing schedule in court case with US SEC

The LBRY open source project has written to the US District Court in New Hampshire to seek a briefing schedule so the court can make a decision in its ongoing case with the US Securities and Exchange Commission. Writing through its legal team, LBRY referred to the settlement negotiation of an earlier court judgment.

Unagreed terms

The party’s letter to the court stated that LBRY, in accordance with the framework the Judge laid out last week, presented a settlement offer to the SEC. It stated further that both parties met via a video conference where the settlement offered by LBRY was discussed but they were not able to reach an agreement.

The LBRY team blamed the inconclusive result on the SEC and the remedies it sought. The team, therefore, asked the court to order an easier and faster briefing schedule with regard to the demanded SEC remedies in the case.

While the letter was shared on Twitter by Defense Lawyer, James K. Filan with an explanation of the details, LBRY responded to the tweet that it was advised by its counsel not to publicly share details of the offer it made to the US SEC. LBRY described it as a shame because, according to the platform, it was essentially an offer that gave the SEC everything it owned but the offer was still rejected.

Filan probed further under the same Twitter thread if the SEC wanted a “Consent Judgment” that will equally include an agreement that all sales are security sales, even on secondary markets. Dramatically, LBRY replied with a zipped mouth emoji.

LBRY Is dying

Meanwhile, LBRY tweeted on its handle that it has to declare upfront that LBRY Inc. will be possibly dead in the near future. It said the announcement had to come publicly from them because any information privately shared with the SEC eventually gets leaked out.

But the announcement clarified that it is expected that LBRY’s mission goes on but the company has been killed by SEC and legal debts. The tweet said it is the company itself that has to die and not the blockchain.

The LBRY case is an instance of having an unregistered securities firm dragged to court by the SEC. The SEC, in March 2021, asked the court for an injunction against selling the tokens and for the firm to give up all funds it made in earlier transactions. The US SEC won the case this month.

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.