Ripple is not the only company to sue the US Securities and Exchange Commission (SEC). LBRY is another example, and not just any example. LBRY was seen as a kind of buffer for Ripple, but it now seems beyond saving. At least not for the company.
Crypto project LBRY has to close by the SEC
Explains on Twitter the company that will likely file for bankruptcy in the near future. The lawsuit with the SEC has led to a loss for LBRY. It is now official that the Initial Coin Offering (ICO) was actually an illegal “IPO” as it was the sale of the LBC token without registration.
Company must therefore disappear from the SEC. The blockchain and the LBC token may continue to exist and the company also intends to ensure that. Ironically, the SEC found that LBC only existed for speculation, while LBRY argued that the coin is used to publish articles, reward authors, and purchase and promote video content.
Not so long ago, LBRY said it was licking its wounds, but not giving up. Unfortunately, we don’t know exactly what it’s planning yet.
It is specifically LBRY Inc that must die, the LBRY protocol and blockchain will continue. pic.twitter.com/SWwbqTq9In
— LBRY 🚀 (@LBRYcom) November 29, 2022
Will LBRY Affect XRP Lawsuit?
How this will affect the case between Ripple and the SEC remains to be seen. LBRY’s lawsuit has often been compared to Ripple’s, as Ripple claims that XRP is also being used for practical purposes. However, LBC is now purely speculative, according to the judge.
Ripple has long had a large following. Attorney Jeremy Hogan is one of them. He thinks the SEC is going to make sure that LBRY’s loss will affect the Ripple case. Attorney John Deaton also agrees, but he thinks the consequences will be minimal.