[WinstonSmith84]

In a nutshell, this is the same as to what Ripple / XRP has been accused of, the difference being that Ripple had better lawyers and probably more money, than LBRY.

https://en.wikipedia.org/wiki/LBRY

> The SEC alleged that LBRY, Inc. had sold LBRY credits (LBC) to fund their work without registering them with the SEC as a security, a violation of securities laws. In response, LBRY's CEO began a public relations campaign to gather support among blockchain and cryptocurrency enthusiasts, and to argue that the SEC had mislabeled LBC as a security. On November 7, 2022, the SEC won the lawsuit when Judge Paul Barbadoro of the United States District Court for the District of New Hampshire granted the SEC's motion for summary judgment. In 2023, LBRY was forced to close due to fines related to SEC fines.