Legal Dispute Intensifies As LBRY Ordered To Provide Financial Records In Court

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The legal status of cryptocurrencies continues to be a hot topic in the financial world, with two major cases taking center stage.

Here’s what’s happening. 

Defense attorney James K. Filan has shared that in the ongoing LBRY case, the court has issued an order to set a date for further discovery on remedies. 

The Securities and Exchange Commission (SEC) has ordered LBRY, the blockchain-based sharing platform, to produce electronic files supporting its financial statements as part of an ongoing legal dispute over classifying its digital tokens as securities. 

The SEC and LBRY have 14 days to agree on a set of written requests, and LBRY will have 30 days to respond. If depositions are necessary, they must be completed within 30 days of the parties’ meeting. The regulatory body must then produce a supplemental brief within 14 days of the completion of discovery, and LBRY will have 14 days to file a response brief. The court will make a final ruling after considering both briefs.

Deaton to File Amicus Brief in Ripple-Zakinov Case

It has also come to light that Deaton will file a Motion to act as an Amicus Brief in the case of Zakinov v. Ripple in California. The plaintiffs in the case claim that Ripple sold XRP as an unregistered security and seek to certify a class of all XRP holders worldwide, including those who disagree with the plaintiffs and consider XRP a security.

Deaton will argue that the court should not certify the class due to conflicting opinions and the small number of plaintiffs compared to the large number of XRP holders who disagree with them, including those in countries where XRP is not considered a security.

The ongoing legal disputes surrounding cryptocurrencies and their classification as securities continue to create uncertainty in the market. The SEC’s direction to LBRY to produce financial records and the filing of a Motion to File an Amicus Brief in the case of Zakinov v. Ripple highlight the ongoing efforts to determine the legal status of cryptocurrencies and the impact on those who hold and trade them. The final rulings in these cases will have significant consequences for the cryptocurrency industry and market participants.