LBRY plans to appeal ruling that considered LBC token a security

• LBRY Inc. filed a motion to appeal the court’s ruling in favour of the US SEC.
• LBRY planned to wind down operations after a New Hampshire judge ruled that the LBC token traded as an unregistered security.
• The firm's plan to contest the ruling comes after Ripple’s partial win against the SEC, on XRP.

Content distribution platform LBRY said late Thursday that it has filed a notice of appeal against a recent ruling that declared the LBC token as an unregistered security. In July, a New Hampshire judge sided with the US Securities & Exchange Commission, which had brought the crypto firm to court for violating securities laws while issuing its token.

Recently, the regulator considered LBRY Inc’s financial constraints and revised down the settlement amount from $22 million to a $111,614 penalty.

Also read: MakerDAO likely to spend $100 million on development and testing of tokenized US Treasury bonds

XRP partial win against SEC could drive LBRY appeal

The crypto community has closely monitored both the LBRY Inc. and Ripple lawsuit for their similarities. The final ruling in LBRY case declared the LBC token an unregistered security, favoring the US SEC. However, the outcome of the Ripple case was different, as XRP wasn't considered a security when the token was bought via programmatic sales on exchanges.

XRP community members and pro-XRP attorneys said that Ripple’s partial win against the SEC may have inspired LBRY to appeal the judge’s final ruling in its own lawsuit.

When the New Hampshire judge ruled in favor of the SEC, LBRY Inc was left with a $22 million settlement fee and shared plans to wind down its operations.

The firm seems to have pivoted since then, with its latest intent to appeal the ruling, filed with the court early on Thursday, according to a statement in its official X account.

Bill Morgan, a pro-crypto, pro-XRP attorney voiced his support for the LBRY Inc. filing in his recent tweet: