In a bold move to support the fight for justice, John Deaton, the attorney renowned for representing XRP token holders in their legal battle against the Securities and Exchange Commission (SEC), has formally filed a notice to serve as Amicus Curiae in the LBRY court case. This significant development comes as LBRY recently filed an appeal notice to challenge the final judgment issued against them. Let’s delve into the details and implications of this crucial step towards justice.
The term “Amicus Curiae,” which translates to “friend of the court” in Latin, refers to individuals or groups who are not directly involved in a lawsuit but offer valuable information, expertise, or briefs to assist the court in making informed decisions. John Deaton’s decision to serve as Amicus Curiae in the LBRY court case demonstrates his deep commitment to supporting fair outcomes and upholding the principles of justice.
In March 2021, the SEC filed a lawsuit against LBRY, alleging unlawful selling of LBC tokens without registering with the agency. Subsequently, LBRY faced further charges of violating securities laws by selling their native LBC tokens without a license. The SEC categorized LBC as an unregistered security based on the Howey test. As a consequence, LBRY was mandated by the New Hampshire District Court to pay a significant civil penalty of $22 million.
LBRY did not accept this judgment quietly and rightfully contested the penalty, arguing that it did not consider their legitimate software development and hosting expenses. Unfortunately, LBRY suffered a setback in July 2023 when they lost the legal battle. However, they decided to wind down their operations gradually and were ordered to pay a reduced penalty of $111,614 instead of the initial $22 million. Consequently, LBRY was also barred from engaging in activities involving securities law violations or unregistered offerings of crypto securities in the future.
Recent legal victories achieved by Ripple and Grayscale against the SEC have injected a sense of optimism into the crypto community, suggesting a potential positive outcome for LBRY on appeal. For instance, on July 14, 2023, U.S. District Judge Analisa Torres issued a summary judgment in Ripple’s favor, ruling that the sale of XRP tokens to retail buyers did not constitute securities. The parallels between the Ripple and LBRY cases have heightened expectations regarding the potential implications of LBRY’s appeal for the ongoing XRP lawsuit.
On September 7, LBRY filed an appeal with the United States Court of Appeals for the First Circuit, determined to combat what they perceive as unjust and incorrect SEC decisions. The company firmly believes that the SEC’s ruling aims to undermine the cryptocurrency industry as a whole and has expressed their determination to defend against such actions. Michael Kaufman, LBRY’s spokesperson, stressed their commitment by stating, “We won’t let them.”
John Deaton, an ardent advocate for cryptocurrency investors, has consistently demonstrated his commitment to fighting for their interests and actively engaging in legal battles concerning cryptocurrency regulations. In the LBRY court case, Deaton submitted a Notice of Appearance representing Amicus Curiae Naomi Brockwell, the founder of Crypto Law. Together, they co-founded Crypto Law, a platform dedicated to providing insights and updates on the legal and regulatory aspects of cryptocurrencies in the United States.
John Deaton’s decision to serve as Amicus Curiae in the LBRY court case not only showcases his dedication but also symbolizes a collective effort towards justice in the crypto space. By offering his experience and expertise, Deaton aims to support LBRY’s appeal and, in turn, influence outcomes that could have far-reaching implications for the cryptocurrency industry as a whole.
The recent submission by John Deaton as Amicus Curiae in the LBRY court case marks a critical milestone in the pursuit of justice. LBRY’s appeal and Deaton’s involvement hold the potential to create precedents and shape the future legal landscape for cryptocurrencies. As the fight for justice continues, the crypto community eagerly awaits the court’s decision and hopes for a fair and just resolution.
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