XRP Advocate and Crypto Lawyer John Deaton Joins LBRY Lawsuit – Here’s the Latest

Source: iStock / Pgiam 

On September 13, John Deaton, the attorney renowned for representing XRP token holders in their legal battle against the SEC, formally filed a notice to serve as Amicus Curiae in the LBRY court case. 

This move was followed by an official submission to the United States Court of Appeals for the First Circuit on September 14.

An “Amicus Curiae,” which translates to “friend of the court” in Latin, refers to an individual or group not directly involved in a lawsuit but offers information, expertise, or a brief to assist the court in making a decision.

This recent development comes in response to LBRY’s filing of an appeal notice to the United States Court of Appeals for the First Circuit just one week ago.

LBRY’s appeal seeks to challenge the final judgment issued on July 11, which mandated LBRY to pay a civil penalty and prohibited its engagement in unregistered offerings of cryptocurrency securities.

Taking to social media, John, through X (Formerly Twitter), affirmed his participation and dedication, stating that…

“Win, lose, or draw, we will be in the fight!”

In March 2021, the US SEC filed a lawsuit against LBRY, accusing the company of unlawfully selling LBC tokens without registering with the agency.

In November 2022, the SEC further charged LBRY with violating securities laws by selling their native LBC tokens without a license, citing a breach of section 5 of the Securities Act 1933.

The SEC classified LBC as an unregistered security based on the Howey test.

Consequently, the New Hampshire District Court mandated LBRY to pay a $22 million penalty.

LBRY contested this, contending that the penalty did not account for legitimate software development and hosting expenses. Unfortunately, LBRY lost this legal battle in July 2023.

In response, LBRY announced its intention to wind down its operations gradually. 

Following LBRY’s move to insolvency in July, the company was ordered to pay a reduced penalty of $111,614 instead of the $22 million.

Additionally, it was immediately prohibited from engaging in activities involving securities law violations or unregistered offerings of crypto securities in the future.

However, recent legal victories by Ripple and Grayscale against the SEC have generated optimism for a positive outcome on appeal.

Ripple Wins Summary Judgment in Legal Battle Similar to LBRY Case; LBRY Appeals SEC Decision

On July 14, 2023, U.S. District Judge Analisa Torres issued a summary judgment in Ripple’s favor, determining that the sale of XRP tokens to retail buyers did not constitute securities.

The case involving Ripple Labs faced similar SEC allegations centered on selling $1.3 billion in XRP tokens. The outcome of the LBRY case is viewed as having potential implications for the XRP lawsuit.

On September 7, LBRY filed an appeal with the United States Court of Appeals for the First Circuit.

“LBRY is appealing the SEC’s decision because it is unjust and incorrect,” Kaufman said in a written statement.

“The SEC has shown clear intent to use this ruling to damage the cryptocurrency industry more broadly. We won’t let them.”

John Deaton was previously known for fighting for the interest of cryptocurrency investors and demonstrating his active commitment to issues concerning legal battles involving cryptocurrency regulations and legal actions.

John Deaton submitted a Notice of Appearance representing Amicus Curiae Naomi Brockwell, the founder of Crypto Law.

Deaton and Brockwell are the co-founders of Crypto Law, a platform dedicated to delivering insights and updates regarding the legal and regulatory aspects of cryptocurrencies in the United States.

Source link

[adinserter block=”2″]