The community responded by dropping the SEC’s XRP holding and shutting down LBRY
Ripple's latest victory in a legal battle with US securities regulators is news to crypto enthusiasts that blockchain platform LBRY has shut down operations, sparking community reaction.
The US Securities and Exchange Commission (SEC) announced its intention to dismiss all claims against Ripple CEO Brad Garlinghouse and executive director Chris Larsen on October 19. 2020.
On the same day, LBRY, a leading blockchain file-sharing and payment network, announced that it had ceased operations, citing “several million dollars” in debts to the SEC, its legal team, and private creditors. The creators of LBRY are known for building Odyssey, which leverages the network, aiming to bring a decentralized alternative to major video platforms like YouTube.
The SEC filed suit against LBRY in March 2021, alleging the same securities violations the firm brought against Ripple. After the SEC reduced the $22 million fine against LBRY to $111,000, the company ultimately decided not to pursue its appeal against the SEC.
“While celebrating another big win for Ripple, we mustn't forget the damage the SEC has already done to crypto,” famous XRP influencer Ashley Prosper wrote on X (formerly Twitter) on October 19. The crypto fan expressed hope. The LBRY app and its eponymous native token will be relaunched due to “extensive censorship on X and current censorship on YouTube.”
#XRP #XRPCommunity As we celebrate another big win for Ripple, let's not forget the damage the SEC has already done to crypto. @LBRYcom has decided not to pursue his appeal against the SEC and closed the door for good today. However, with extensive censorship on X and… pic.twitter.com/6hr3GL6qpi
— Ashley Prosper (@AshleyPROSPER1) October 20, 2023
“While celebrating today's XRP ruling, the SEC's alleged blockchain failure has slipped under the radar,” blockchain enthusiast Slorg said in a thread on X. With real user adoption” is now gone and no more. “Destined to forget,” Slorg wrote.
As we celebrate today's XRP decision, the blockchain's less-than-successful fallout from the SEC went under the radar.
Today LBRY Inc closed:
1⃣ Background
LBRY plans to be a decentralized, open source digital content platform.
In the year They posted a sign in 2016… pic.twitter.com/MVgPQbdXxQ
— Slorg (@SlorgoftheSlugs) October 20, 2023
Some social media commentators have pointed out that there is a significant difference between Ripple and LBRY in terms of capital. XRP is the fifth largest cryptocurrency by market capitalization, valued at $27 billion, while LBRY Credit's market cap is only about $5.5 million at the time of writing, according to data from CoinMarketCap.
“If Ripple didn't have the money to fight the SEC, it would be LBRY,” wrote one X commenter. You have to fight the big whales.
John Deaton, an attorney for XRP, said the LBRY case highlights the SEC's ramifications for the industry. Deaton has not been proven to have committed any fraud but has criticized the SEC for failing to prevent major failures such as FTX.
“After millions of dollars in losses, the SEC received a $130,000 fine. This case alone proves that the SEC is a broken, failed and dysfunctional agency,” Deaton said.
Although Ripple's executives scored a major legal victory, some industry observers say the dispute with the SEC is far from over.
Related: Crypto Twitter Hall of Fame: Pro-XRP Advocate John Deaton '10x More to BTC, 4x More to ETH
“Expect to see some more litigation between the two parties over the level of penalties regarding the appropriate penalty for Ripple’s $700M+ institutional sale,” said Fox News reporter Eleanor Terrett, citing legal experts focused on the XRP case. According to sources, Ripple should expect a big fight as the SEC is still looking for a large amount to boast.
So, what are the next steps in the @Ripple case?
Now that @SECGov has dropped the charges against @bgarlinghouse and @chrislarsensf, expect to see some more litigation between the two parties over the level of fines for Ripple's $700M+ fine… https://t.co/ 4jJAzKtTjp
— Eleanor Terrett (@EleanorTerrett) October 19, 2023
In an October 19 filing, the SEC mentioned that it will advise the SEC and Ripple regarding Section 5 violations related to institutional sales of XRP. It has asked the regulator to submit a timetable for further litigation by November 9, 2023.
Magazine: Crypto Twitter Flame Hall: Pro-XRP Advocate John Deaton Says '10x More to BTC, 4x More to ETH'
