On March 29 the U.S. SEC has submitted a suit against the distributed content protocol LBRY. The agency stated LBRY is trading unlisted securities via its native cryptocurrency and that there is a violation of the Securities Act of 1933.
LBRY is a decentralized project created for content. Its in-built token LBRY Credits (LBC) serves as a means of publishing and accessing content.
The network was established by Jeremy Kauffman and Jimmy Kiselak in May 2015.The SEC claims leastwise from July 2016 to February 2021 LBRY sold tokens to a lot of investors without listing the asset and got over $11 M. This sum includes also payments made in Bitcoin.
LBRY's case will be heard in court. Referring to accusations, the blockchain firm published a "Case Guidance and FAQ" where the team said they will fight and continue their work. The team also noted LBRY's being decentralized and it's unlikely they will lose the case.