The Commission and LBRY now find themselves at an impasse regarding the remedies the SEC can seek
In its new court filing, cryptocurrency startup LBRY claims that the U.S. Securities and Exchange Commission’s request for remedies showed a “complete disregard” of facts regarding members from the company being able to cause future securities violations.
LBRY has asked the court to reject SEC’s demand for an injunction and disgorgement with a more modest civil penalty instead.
In their filings, the defendants allege that the SEC is conflating LBRY and Odysee, two distinct entities engaged in separate operations.
Moreover, they argued that the $22 million disgorgement demanded by the SEC was not based on factual numbers regarding profits caused by violations committed by LBRY.
LBRY has asked for only a modest first-tier civil penalty rather than injunctive relief and disgorgement.
Earlier this month, LBRY filed a motion to limit the SEC’s remedies.
As reported by U.Today, the Ripple ally lost its case against the SEC in early November.