Attorney John Deaton has filed a formal notice of appearance as an Amicus Curiae in the LBRY lawsuit. Deaton is well-known for representing XRP token holders in the legal battle against the US Securities Exchange Commission (SEC). The LBRY appeal, which was filed a week ago, aims to contest the final judgment issued on July 11. This judgment ordered LBRY to pay a civil penalty and banned its involvement in unregistered offerings of cryptocurrency securities.
In a document filed on September 14th, Deaton officially submitted his Notice of Appearance on behalf of Amicus Curiae Naomi Brockwell. Both Deaton and Brockwell are co-founders of Crypto Law, a platform that provides updates on legal and regulatory developments related to digital assets in the country.
Deaton confirmed the development, stating, “Win, lose or draw, we will be in the fight!”
The SEC’s scrutiny of LBRY began in March 2021 when the regulatory body claimed that the LBRY Credit token (LBC) was a security under the 1933 Securities Act. In November 2022, a New Hampshire District Court ordered LBRY to pay $22 million to the SEC, considering LBC an unregistered security based on the Howey test.
LBRY challenged the ruling, arguing that the $22 million penalty did not account for legitimate business expenses related to software development and hosting. Due to the company’s insolvency, the SEC requested a reduced penalty, resulting in a revised sum of $111,614.
LBRY recently announced plans to gradually cease operations, but recent legal victories by Ripple and Grayscale against the SEC have sparked optimism for a favorable appeal outcome.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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