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SEC Charges LBRY With Failing to Register Their Tokens as Securities
Summary: The principals of blockchain-based file-sharing and payment network, LBRY were hit by charges brought by the US Securities and Exchange Commission (SEC), which found that their conduct was that of unregistered broker-dealers. LBRY powers decentralized platforms, primarily social networks and video platforms, touting its offering as a decentralized alternative to YouTube. As explained in the ...
The principals of blockchain-based file-sharing and payment network, LBRY were hit by charges brought by the US Securities and Exchange Commission (SEC), which found that their conduct was that of unregistered broker-dealers.
LBRY powers decentralized platforms, primarily social networks and video platforms, touting its offering as a decentralized alternative to YouTube. As explained in the order, the company raised $11 million through selling “LBRY Credits” to help further develop its file-sharing network built using blockchain and BitTorrent technology.
The SEC was careful to note that they had not accused LBRY of fraud, but rather of failing to register their tokens as securities. If the company agrees to settle the charges with the agency, the agreement would typically require LBRY to return funds to investors via a compensation fund, halt the offering and pay back all fees it had already collected.
By Amy Liu
Tags: Blockchain,charge,Decentralized,LBRY,SEC
Link: SEC Charges LBRY With Failing to Register Their Tokens as Securities [Copy]
