In 2022, attorney John Deaton, known for representing XRP holders in the Ripple-SEC lawsuit, took an active role in the LBRY lawsuit as an Amicus Curiae. Additionally, he submitted a Notice of Appearance on behalf of Amicus Curiae Naomi Brockwell in the LBRY case. He expressed unwavering commitment, regardless of the case’s outcome, emphasizing that they will persist in the battle.
The SEC had accused LBRY in 2022 of violating securities laws due to their sale of native LBC tokens. LBRY contested these allegations but ultimately faced defeat in July 2023. Consequently, LBRY was instructed to pay a reduced penalty of $111,614 and permanently cease all activities related to securities law violations or unregistered crypto securities offerings. In response to this ruling, LBRY decided to shut down its operations.
Here’s a summary of the events:
In 2022, lawyers Bill Gannon and John Deaton requested the court to submit a document on behalf of tech journalist Naomi Brockwell. In her statement, Brockwell disclosed her vested interests in the case, citing earnings in the form of LBC cryptocurrency received through tips, viewer purchases, and rewards. She also clarified that she had not converted her LBC tokens into cash and retained ownership of them.
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In July 2023, the United States District Court in New Hampshire issued a final judgment in the SEC vs. LBRY case, finding LBRY guilty of violating the Securities Act of 1933.
Comparatively, the Ripple Labs case faced similar SEC allegations related to the sale of $1.3 billion in XRP tokens. Despite speculation that the LBRY ruling might impact the XRP lawsuit, on July 14, 2023, U.S. District Judge Analisa Torres ruled in favor of Ripple. The judge determined that XRP token sales to retail buyers did not qualify as securities.
An “Amicus Curiae,” a Latin term for “friend of the court,” refers to an individual or organization that is not a party to a lawsuit but provides insights, expertise, or a brief to assist the court in its decision-making process.