The US SEC is going for another blockchain company for allegedly selling unregistered securities.
According to the court documents that were filed yesterday, the peer-to-peer content distribution network LBRY has been accused of selling “millions of dollars worth of unregistered securities to investors” since 2016.
The securities regulator wants a permanent injunction against LBRY for having the right to continue to sell tokens, plus a disgorgement of “ill-gotten gains” and prejudgement interest.
The SEC claims that the securities were sold as LBRY Credits (LBC), which were presented to investors as being used in order to fund the business of LBRY and built its product.
LBRY is an open-sourced protocol that lets participants post their content without fear of retribution. The SEC claims that LBC tokens have been sold as investment contracts and traded for US dollars and other non-monetary contributions.
The network has asked for the help of the crypto community, claiming that the whole industry is at risk and that its credits are not securities.