The SEC sued LBRY in March 2021, alleging that LBC tokens were securities and that the startup had violated securities laws by selling them without registering with the agency. LBRY pushed back, claiming that LBC tokens were not securities, and that the SEC did not give it fair notice that its sale of LBC was subject to securities laws, thus violating the company’s right to due process. The LBRY protocol is a blockchain-based file-sharing network.
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