Pro XRP Lawyer John Deaton Joins LBRY Lawsuit Appeal
In a surprising turn of events, John Deaton, a prominent lawyer renowned for representing XRP token holders in their legal tussle with the US Securities Exchange Commission (SEC), has officially thrown his hat into the ring by filing a formal Notice of Appearance as an Amicus Curiae in the LBRY lawsuit. This legal development comes on the heels of LBRY's decision to challenge the SEC's judgment, which followed the platform's announcement of impending shutdown plans.
LBRY, a decentralized content-sharing and publishing platform, recently lodged an appeal notice with the United States Court of Appeals for the First Circuit. Their goal? To contest the final judgment handed down on July 11, which not only slapped LBRY with a civil penalty but also prohibited the platform from engaging in unregistered offerings of cryptocurrency securities.
John Deaton's entrance into the LBRY lawsuit is a significant development. He submitted his formal Notice of Appearance on September 14th, representing Amicus Curiae Naomi Brockwell. Both Deaton and Brockwell are the co-founders of Crypto Law, a platform that closely monitors and reports on legal and regulatory developments in the digital asset sphere within the United States.
In response to this latest move, Deaton took to Twitter to affirm his commitment, saying, "Win, lose or draw, we will be in the fight!" This statement underscores the determination of those involved to bring about a just resolution to the LBRY case.
The SEC's involvement with LBRY began in March 2021 when the regulatory body asserted that LBRY Credit token (LBC) should be classified as a security under the 1933 Securities Act. In November 2022, a New Hampshire District Court ruled in favor of the SEC, ordering LBRY to pay a substantial $22 million fine for offering an unregistered security, as determined by the Howey test.
LBRY, however, was not one to back down easily. They contested the ruling, arguing that the $22 million penalty did not account for legitimate business expenses linked to software development and hosting. Due to the company's financial difficulties, the SEC eventually requested a reduced penalty, which resulted in a considerably lower sum of $111,614.
Despite their financial challenges and the initial legal setback, LBRY's recent legal victories, along with those of Ripple and Grayscale against the SEC, have breathed new life into their appeal prospects. These victories have injected a sense of optimism into the LBRY camp, making them hopeful for a favorable outcome in their legal battle.
The inclusion of John Deaton as an Amicus Curiae in the LBRY lawsuit only adds to the intrigue of this ongoing legal saga, and the crypto community will be closely watching as events continue to unfold.