The US Securities and Exchange Commission (SEC) has filed a lawsuit against New Hampshire-based LBRY Inc, accusing it of selling unregistered securities in the form of digital currencies bearing the same name as the company “LBRY Credits” LBC”.

LBRY operates a decentralized content publishing platform.

According to the company, digital currencies, “LBRY Credits,” are used as part of the platform to publish and purchase content.

The lawsuit filed by the SEC asserts that the “LBRY” trusts are securities and that the company’s sale of these credits constitutes an unregistered offer to investors.

In a statement published on Monday by the SEC, it said:

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From at least July 2016 to February 2021, LBRY, which offers a video-sharing app, sold digital asset securities called “LBRY Credits” to several investors.

Including investors residing in the USA.

LBRY has not submitted a registration statement for the offer, and that the offer has failed to meet any registration exemption.

This also told the Securities and Exchange Commission that the company received more than 11 million dollars, and services from buyers who participated in its offer.

A copy of the complaint can be found over here.

LBRY responded to the lawsuit filed against it by the SEC and told that what it is being exposed to is part of a widespread attack on the crypto industry in the United States of America.

The lawsuit against “LBRY” follows the previous lawsuit against messaging app Kik and, more recently, Ripple.

I wrote “LBRY” in FAQ section On the website I launched in the wake of the lawsuit:

The Securities and Exchange Commission has filed a complaint against LBRY alleging that all distributions of LBRY Credits by LBRY Inc are unregistered securities offerings.

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This claim represents a massive threat to the entire cryptocurrency industry.

It was also stated on the LBRY website that LBRY had been under the SEC for three years.

LBRY also wrote on its website:

LBRY has been preparing to fight this issue for a full three years, which is how long the Securities and Exchange Commission has been investigating.

We wanted to tell you sooner, but the transparency of the ongoing investigations is not welcome by the Securities and Exchange Commission.

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