SEC Charges New Hampshire Issuer of Digital Asset Securities with Registration Violations
Litigation Release No. 25060 / March 29, 2021
Securities and Exchange Commission v. LBRY, Inc., Civil Action No. 1:21-cv-00260 (D.N.H. filed March 29, 2021)
The Securities and Exchange Commission today charged LBRY, a blockchain company, with conducting an unregistered offering of digital asset securities.
According to the SEC's complaint, from at least July 2016 to February 2021, LBRY, which offers a video sharing application, sold digital asset securities called "LBRY Credits" to numerous investors, including investors based in the US. The complaint alleges that LBRY did not file a registration statement for the offering, and that the offering failed to satisfy any exemption from registration. The complaint further alleges that by failing to file a registration statement, LBRY denied prospective investors the information required for such an offering to the public. As alleged, LBRY received more than $11 million in U.S. dollars, Bitcoin, and services from purchasers who participated in its offering.
The SEC's complaint, filed in the federal district court in New Hampshire, charges LBRY with violating the registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933. The SEC seeks permanent injunctive relief, disgorgement plus prejudgment interest, and civil penalties.
The SEC's case is being handled by Peter Bryan Moores, Sofia Hussain, Eric Forni, Marc Jones, and Amy Gwiazda of the Boston Regional Office.