LBRY, Inc., a crypto firm driving a peer-to-peer digital marketplace powered by a native coin, has been involved in a legal battle with the Securities and Exchange Commission of the United States (SEC). The regulator accused LBRY of illicit security sales with the token LBRY Credits, similar to payment provider Ripple (LBC).
This case started a few months after Ripple’s and has taken some unexpected twists and turns. LBRY, Inc. recently tweeted a statement from one of the company’s founders and Chief Technical Officer, Alex “Grin” Grintsvayg (CTO).
Grin quipped about the SEC smelling like garlic and having a strong bodily odor when he appeared for the case’s deposition, as shown below. The use of a “psychological warfare” strategy could deter the SEC from continuing their action.
The crypto firm stated it did not “respect the SEC” and that it has been following the rules for the past four years. This behavior has “gotten us absolutely nothing,” according to the LBRY team, who also added, “we’re done being polite to these monsters.”
According to reports, the regulator informed the company about the joke and requested that it be taken down. LBRY turned to its community to deliver another message to the Securities and Exchange Commission.
Along with Grintsvayg, the LBRY team is led by Josh Finer, who is also a company founder and Director of Operations, and Jeremy Kauffman, who is the company’s founder and CEO (CEO). Kauffman, who is running for the United States Senate in New Hampshire, has endeavored to be transparent about the company’s legal struggle with the Securities and Exchange Commission.
Why is it possible that the case of this cryptocurrency company will be decided before the end of the year?
On the social media platform Reddit, Ripple’s Kauffman recently held an Ask Me Anything (AMA). The executive discussed his campaign, the company’s case against the Securities and Exchange Commission, and the current situation of LBRY.
LBRY and Odysee, another of their businesses, are “blowing up,” according to Kauffman, despite the legal action against the company. Regarding their involvement with the regulator and the controversy around the company’s CTO comment, the executive stated:
It’s not like the SEC could possibly treat LBRY any worse. We’ve won nothing by being pleasant, and we’ve lost nothing by being truthful.
The case against LBRY could have important implications for the SEC, similar to Ripple’s case. This common struggle has brought the communities behind these projects together.
John Deaton, a lawyer and active member of the XRP community, recently talked with Kauffman. After their interview, Deaton said the outcome of LBRY case against the Commission could set a precedent to classify Ethereum (ETH) as security and affect the Bitcoin mining industry. Deaton said:
The SEC is claiming if a company owns a token while actively improving or upgrading the platform or the way the token is utilized and you sell that token, it is a security. Software is constantly being upgraded. BTC miners perform upgrades. What about ETH 2.0? It’s crazy!
Surprisingly, the case between LBRY and the SEC could come to an end before Ripple’s case is resolved. The trial is scheduled to begin on September 8, 2022, while the payment company could be extended beyond Q4, this year.
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