{"id":177894,"date":"2023-10-20T16:36:57","date_gmt":"2023-10-20T11:06:57","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=177894"},"modified":"2023-10-20T16:36:57","modified_gmt":"2023-10-20T11:06:57","slug":"community-reacts-to-sec-dropping-xrp-case-and-lbry-shutdown-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/community-reacts-to-sec-dropping-xrp-case-and-lbry-shutdown-crypto-news\/","title":{"rendered":"Community reacts to SEC dropping XRP case and LBRY shutdown – Crypto News"},"content":{"rendered":"
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Ripple\u2019s new win in the legal battle against the United States securities regulators has been marred for crypto enthusiasts by news of the blockchain platform LBRY shutting down operations, which has triggered the community to react.<\/p>\n

The U.S. Securities and Exchange Commission (SEC) announced its intention to dismiss all claims<\/a> against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen on Oct. 19. The event marked a significant legal win for Ripple in the civil case filed by the SEC<\/a> in late 2020.<\/p>\n

On the same day, LBRY, a major blockchain file-sharing and payment network, announced the termination of its operations<\/a>, citing \u201cseveral million dollars\u201d in debts owed to the SEC, its legal team and a private debtor. LBRY\u2019s creators are known for building Odysee, an open-source video-sharing website that uses the network, aiming to bring a decentralized alternative to major video platforms like YouTube.<\/p>\n

The SEC filed a lawsuit against LBRY<\/a> in March 2021, accusing the firm of similar securities law violations to those it brought against Ripple. Even after the SEC downgraded the $22 million penalty<\/a> against LBRY to around $111,000, the firm eventually decided not to continue its appeal against the SEC.<\/p>\n

\u201cWhilst we celebrate another massive win for Ripple, let’s not forget the damage the SEC has already done to crypto,\u201d prominent XRP influencer, Ashley Prosper, wrote on X (formerly Twitter) on Oct. 19. The crypto enthusiast expressed hope that the LBRY app and its eponymous native token would rise again due to the \u201crampant censorship on X and the ever-present censorship on YouTube.\u201d<\/p>\n

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#XRP<\/a> #XRPCommunity<\/a>
Whilst we celebrate another massive win for Ripple, let’s not forget the damage the SEC has already done to crypto. @LBRYcom<\/a> has decided not to continue its appeal against the SEC and shut its doors for good today. However, with the rampant censorship on X and\u2026 https:\/\/t.co\/66tOS8L7Z7<\/a> pic.twitter.com\/6hr3GL6qpi<\/a><\/p>\n

\u2014 Ashley PROSPER (@AshleyPROSPER1) October 20, 2023<\/a><\/p><\/blockquote>\n

\u201cAs we celebrate today’s XRP ruling, a less successful outcome by a blockchain sued by the SEC went under the radar,\u201d blockchain enthusiast Slorg noted in a thread on X. The poster said it is unfortunate that what was \u201conce a successful Web3 startup with actual user adoption\u201d is now defunct and non-existent. \u201cRegulated into oblivion,\u201d Slorg wrote.<\/p>\n

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As we celebrate today’s XRP ruling, a less successful outcome by a blockchain sued by the SEC went under the radar.<\/p>\n

Today LBRY Inc shut down:<\/p>\n

1\u20e3 Background<\/p>\n

LBRY set out to become a decentralized, open-sourced digital content platform. <\/p>\n

In 2016 they released a token that would\u2026 pic.twitter.com\/MVgPQbdXxQ<\/a><\/p>\n

\u2014 Slorg (@SlorgoftheSlugs) October 20, 2023<\/a><\/p><\/blockquote>\n

Some social media commenters pointed out a significant difference between Ripple and LBRY in terms of their capital. XRP is the fifth-largest cryptocurrency by market capitalization, valued<\/a> at $27 billion, while the LBRY credits\u2019 market cap amounts<\/a> to just about $5.5 million at the time of writing, according to data from CoinMarketCap.<\/p>\n

\u201cRipple would have been LBRY if they didn\u2019t have the funds to fight the SEC,\u201d one X commenter wrote<\/a>, arguing that the cases\u2019 outcomes make a stark illustration of the way \u201crich establishments can use the courts to their advantage until they have to battle the big whales.\u201d<\/p>\n

According to pro-XRP lawyer John Deaton, the LBRY case highlights the consequences of the industry overreach by the SEC. Deaton criticized the SEC for picking on a small American company, which wasn\u2019t proven to have committed any fraud, but failing to prevent major failures like FTX.<\/p>\n

\u201cAfter millions of dollars were wasted, the SEC got a $130K fine. This case alone proves the SEC is a broken, failed and inept agency,\u201d Deaton stated.<\/p>\n

Despite Ripple executives scoring a major legal win, its litigation with the SEC is far from being over, according to some industry observers.<\/p>\n

Related: <\/em><\/strong>Crypto Twitter Hall of Flame: Pro-XRP lawyer John Deaton \u201810x more into BTC, 4x more into ETH<\/em><\/strong><\/a><\/p>\n

\u201cExpect to see some more litigation in the penalty phase between the two parties in regards to the appropriate penalty for Ripple\u2018s $700M+ of institutional sales,\u201d Fox News journalist Eleanor Terrett said on X, citing lawyers focused on the XRP case. According to Terrett\u2019s sources, Ripple should expect a big fight as the SEC will still want a substantial amount for bragging rights.<\/p>\n

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SO, what are next steps in the @Ripple<\/a> case? <\/p>\n

Now that the @SECGov<\/a> has dropped the charges against @bgarlinghouse<\/a> and @chrislarsensf<\/a>, expect to see some more litigation in the penalty phase between the two parties in regards to the appropriate penalty for Ripple\u2018s $700M+ of\u2026 https:\/\/t.co\/4jJAzKtTjp<\/a><\/p>\n

\u2014 Eleanor Terrett (@EleanorTerrett) October 19, 2023<\/a><\/p><\/blockquote>\n

In the Oct. 19 filing, the SEC mentioned<\/a> that the SEC and Ripple will confer with respect to its Section 5 violations regarding its institutional sales of XRP. The regulator requested to propose a schedule for further litigation until Nov. 9, 2023.<\/p>\n

Magazine: <\/em><\/strong>Crypto Twitter Hall of Flame: Pro-XRP lawyer John Deaton \u201810x more into BTC, 4x more into ETH<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ripple\u2019s new win in the legal battle against the United States securities regulators has been marred for crypto enthusiasts by news of the blockchain platform LBRY shutting down operations, which has triggered the community to react. The U.S. Securities and Exchange Commission (SEC) announced its intention to dismiss all claims against Ripple CEO Brad Garlinghouse […]<\/p>\n","protected":false},"author":2,"featured_media":177895,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-177894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/177894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=177894"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/177894\/revisions"}],"predecessor-version":[{"id":177897,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/177894\/revisions\/177897"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/177895"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=177894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=177894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=177894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}