SEC v. LBRY, Inc., No. LR-25775, District of New Hampshire (July 12, 2023) — Press Release
raw: LBRY, Inc.
LBRY, Inc., No. LR-25775 (July 12, 2023)
LBRY, Inc. was ordered to pay a $111,614 penalty and face a permanent injunction for violating federal securities laws by selling unregistered 'LBRY Credits' crypto assets.
LBRY, Inc., a New Hampshire software company, was found to have violated Section 5 of the Securities Act of 1933 by selling unregistered 'LBRY Credits' (LBC) between 2016 and 2021. The court granted summary judgment in favor of the SEC, rejecting LBRY's defense that it lacked fair notice of the law. Consequently, the company was ordered to pay a $111,614 civil penalty and is permanently enjoined from future registration violations.
The SEC successfully litigated against LBRY, Inc., a New Hampshire software company, for failing to register its 'LBRY Credits' (LBC) crypto asset securities. From July 2016 to February 2021, LBRY sold these assets to numerous investors without filing the necessary registration statements, depriving them of essential information. The District Court for the District of New Hampshire granted summary judgment to the SEC, specifically finding violations of Section 5 of the Securities Act of 1933. The court also rejected LBRY's argument that it had not received fair notice regarding the application of securities laws to its offerings. As a result, LBRY was ordered to pay a $111,614 civil penalty. Additionally, the company is permanently enjoined from further registration violations and participating in future unregistered crypto asset offerings.
Extracted insights
- $112K $111,614 $100K–$1M
- person judge peter barbadoro
- agency Securities and Exchange Commission
- agency the securities and exchange commission
- court united states district court for the district of new hampshire
- Judge Peter Barbadoro ordered Lbry, Inc. to pay a civil penalty of $111,614
- United States District Court For The District Of New Hampshire permanently enjoined Lbry from further violations of the registration provisions of the federal securities laws
- Securities And Exchange Commission Complaint alleged Lbry sold crypto asset securities called Lbry Credits from July 2016 to February 2021
- Lbry provided a video sharing application
- Lbry failed to file a registration statement
- United States District Court For The District Of New Hampshire granted summary judgment in favor of the Securities And Exchange Commission
- Securities And Exchange Commission is represented by Marc Jones, Peter Bryan Moores, and Amy Burkart of the Boston Regional Office
- Lbry offered and sold Lbry Credits in violation of Section 5 Of The Securities Act Of 1933
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25775 / July 12, 2023 Securities and Exchange Commission v. LBRY, Inc., Case No, 21-cv-260-PB (D.N.H. filed March 29, 2021) New Hampshire Issuer of Crypto Asset Securities That Violated Registration Requirements Enjoined and Ordered to Pay Penalty On July 11, 2023, Judge Peter Barbadoro of the United States District Court for the District of New Hampshire ordered LBRY, Inc., a New Hampshire software company that issued crypto asset securities called “LBRY Credits” or “LBC,” to pay a civil penalty of $111,614. The Court also permanently enjoined LBRY from further violations of the registration provisions of the federal securities laws and from participating in unregistered offerings of crypto asset securities in the future. The SEC’s complaint alleged that, from at least July 2016 to February 2021, LBRY, which provides a video sharing application, sold crypto asset securities called “LBRY Credits” to numerous investors, including investors based in the United States. LBRY’s failure to file a registration statement denied prospective investors the information required for such an offering to the public. In November 2022, the Court granted summary judgment in favor of the SEC, holding that LBRY offered and sold LBC in violation of Section 5 of the Securities Act of 1933, the registration provisions of the federal securities laws. The Court rejected LBRY’s claim that it lacked fair notice of the application of those laws to its offer and sale. The SEC is represented by Marc Jones, Peter Bryan Moores, and Amy Burkart of the Boston Regional Office.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25775 / July 12, 2023 Securities and Exchange Commission v. LBRY, Inc., Case No, 21-cv-260-PB (D.N.H. filed March 29, 2021) New Hampshire Issuer of Crypto Asset Securities That Violated Registration Requirements Enjoined and Ordered to Pay Penalty On July 11, 2023, Judge Peter Barbadoro of the United States District Court for the District of New Hampshire ordered LBRY, Inc., a New Hampshire software company that issued crypto asset securities called “LBRY Credits” or “LBC,” to pay a civil penalty of $111,614. The Court also permanently enjoined LBRY from further violations of the registration provisions of the federal securities laws and from participating in unregistered offerings of crypto asset securities in the future. The SEC’s complaint alleged that, from at least July 2016 to February 2021, LBRY, which provides a video sharing application, sold crypto asset securities called “LBRY Credits” to numerous investors, including investors based in the United States. LBRY’s failure to file a registration statement denied prospective investors the information required for such an offering to the public. In November 2022, the Court granted summary judgment in favor of the SEC, holding that LBRY offered and sold LBC in violation of Section 5 of the Securities Act of 1933, the registration provisions of the federal securities laws. The Court rejected LBRY’s claim that it lacked fair notice of the application of those laws to its offer and sale. The SEC is represented by Marc Jones, Peter Bryan Moores, and Amy Burkart of the Boston Regional Office.