United States-based cryptocurrency platform LBRY has remained under the strict surveillance of the US SEC even after losing to them in court.
The SEC specifically requested that we stopped sharing with the public what it is like to be investigated by the SEC as part of their settlement proposal.
— LBRY 🚀 (@LBRYcom) November 16, 2022
The platform revealed this information in the late hours of the day on November 16, 2022, stating that the agency has reached out to them to prohibit them from disclosing to the general public how the SEC operates during the investigation. This agreement is part of the settlement proposal introduced by the SEC.
The platform went further to say that all members of the US agency are supposed to have body cameras like cops because they operate like them.
The announcement sparked different reactions from members of the crypto community on Twitter, and all of them dished out a piece of their mind as comments under the post.
A user under the post directed his aggression toward Gary Gensler, the current chairperson of the US SEC, saying that he is very dubious and evades good governmental law to keep some activities in the dark.
So he is not surprised at their request that LBRY keeps their activities away from the public. To back his claim, he added a link to a news article about lawmakers probing Gensler over emails.
Other users were still mesmerized by the fact that LBRY lost the case and is now counted as a security instead of a utility token, and they wondered what it would mean for the project in years to come.
Some believe that the US agency has no legal right to request such a thing from the platform, but another user pointed out that if it’s a settlement proposal that the platform agreed to from the beginning, then they have every right.
However, a user, ToB, was furious over the request and pointed to the case of Samuel Bankman Fried, CEO of FTX Exchange, who was accused of fraud and mismanaging customers’ funds.
The user said the SEC gave him an easy pass even though he enriched himself with other people’s money and sank other platforms like Oxygen Protocol in debt. Now they are giving LBRY a hard time for committing not even a fraction of SBF’s crimes.
He even posted some pictures to support his claim. However, the case against SBF is still on and under SEC probes. Therefore, it would be wrong to assume he has been let off the hook.
A user said LBRY should not comply with what the SEC requests since they already won the case, which they should not have filed in the first place.
The SEC is currently suing XRP for similar reasons, and Jeremy Kauffman, CEO of LBRY, warns that the SEC will be out to get every platform claiming that their utility tokens are secure very soon.