Crypto startup LBRY files appeal to reverse decision in case with SEC

Crypto startup LBRY filed an appeal on Thursday in an attempt to reverse a judge's decision that ruled its token was subject to regulatory oversight. 

LBRY posted the appeal on X, the social media platform formerly known as Twitter, alongside the "ah sh** here we go again" meme. The U.S. District Court for the District of New Hampshire found that LBRY’s LBC token was an investment contract, and therefore a security, in November 2022. 

"LBRY is mistaken about both the facts and the law," the court said in 2022. 

A long road

The Securities and Exchange Commission charged LBRY in 2021 with selling unregistered securities and said the firm "received more than $11 million in U.S. dollars, Bitcoin, and services from purchasers who participated in its offering." Judge Paul Barbadoro issued a final judgment on July 11. 

The ruling was a major blow to crypto issuers, and some said that the SEC did not give enough warning to crypto firms on how it will apply its oversight. LBRY called the lawsuit at the time a "tremendous threat to the entire cryptocurrency industry."

The appeal comes as multiple cases are making their way through the courts, including one involving Ripple Labs that saw a judge issue a mixed ruling as to whether XRP is a security.