April 19, 2024
LBRY Surrenders to SEC: Final Post
Latest Cryptocurrency News

LBRY Surrenders to SEC: Final Post

LBRY, the company behind the LBRY blockchain, has issued its final message to the crypto community, acknowledging the insurmountable debt that has forced it to shut down. The LBRY team announced this on October 20 on Odysee, an LBRY-powered video-sharing website, and on X (formerly Twitter). The company cited “several million dollars” in debt owed to the SEC, its legal team, and a private debtor as the primary reasons for its closure.

The LBRY team stated, “This will be our last post. LBRY Inc. must die, there is no escaping this. It has lost a judgment to the federal government, has several million dollars in debts, and has pledged to shut down.” They also expressed their gratitude to those who had supported their mission for online freedom in a post on X the day before.

LBRY had initially announced its intention to wind down operations in July after a final judgment in favor of the SEC on July 11. While the SEC had initially sought a $22 million penalty, it later reduced the amount to $111,000 upon realizing that the company could not pay. In September, LBRY appeared to backtrack on this decision by filing a notice of appeal against the regulator, leading to some hope within the community.

However, in their latest statement, LBRY confirmed that they would no longer pursue their appeal against the SEC. The company revealed that its executives, employees, and board members had resigned, and their sole focus was on meeting outstanding legal obligations.

In a post on X, former CEO Jeremy Kauffman reflected on LBRY’s eight-year journey in the cryptocurrency industry, stating, “It wasn’t a happy ending, but it was a happy journey.” The crypto community came out to offer their final words of support to the LBRY team. One user, Steve thanked LBRY for their efforts in what seems to be a fight against the SEC, and another user, archerships, praised LBRY’s network as one of the most useful blockchain-based platforms on the market.

It’s worth noting that LBRY’s blockchain is open-sourced and decentralized, and it will continue to operate as long as blocks continue to be mined, as highlighted by the team on Odysee. The platform served 5.3 million unique users monthly between January and April 2023, making it the leading decentralized social media platform in terms of user adoption, as reported by CoinGecko.

Image by wirestock on Freepik

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