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- 1 LBRY was in legal tussle with the SEC for quite some time and the court made a decision against it.
- 2 Though the blockchain firm decided to fight back and appealed against the regulator, it finally ‘gave up’.
Blockchain firm LBRY, recognized for its development of the LBRY blockchain, has issued its final communication to the cryptocurrency community. In this message, the company openly acknowledges the presence of “several million dollars” in debts that have made it infeasible to continue its operations. This announcement marks a significant development in LBRY’s journey within the cryptocurrency industry.
In a solemn declaration on October 20, the LBRY team communicated,
“This will be our last post.”
The video-sharing platform supported by LBRY, Odyssey, made the statement and was also shared on X (formerly Twitter). The final message indicates the closure of their official communications, marking the end of an era for LBRY in the cryptocurrency space.
LBRY has forthrightly disclosed the overwhelming financial hurdle it faces, entailing debts of several million dollars to the SEC, its legal team, and a private debtor.
The company has lost a judgment to the federal government. It is under a debt of several million dollars and has “pledged to shut down.” This announcement represents the concluding chapter in LBRY’s narrative, as it wrestles with financial strains and legal obligations that necessitate the cessation of its operations.
LBRY expressed its gratitude with a message, saying, “Thank you to everyone who fought with us for online freedom,” in a post on X on October 19. The company had first announced its plans to wind down its operations in July, following a final judgment favoring the SEC on July 11.
Continued Legal Tussle Between LBRY and SEC
Initially, the SEC had pursued a penalty of $22 million, which was subsequently reduced to $111,000 after it became evident that the defunct company could not meet the higher amount. This expression of gratitude marks the end of LBRY’s journey and its commitment to the cause of online freedom.
During the month of September, there was a brief moment of optimism within the LBRY community as the company appeared to reconsider its decision. LBRY had filed a notice of appeal against the SEC after Ripple’s win.
However, the company has revealed in its latest statement that it does not intend to appeal against the SEC. This marks a noteworthy change in its stance since earlier it was aggressive in the ongoing legal proceedings.
Furthermore, the company pointed out that executives, employees, and board members have all resigned from their roles. Their primary focus now would be the fulfillment of any remaining legal obligations and requirements.
Reflecting on LBRY’s eight-year presence in the cryptocurrency industry, the former CEO, Jeremy Kauffman, conveyed in an October 19 post on X, “It wasn’t a happy ending, but it was a happy journey.” This statement encapsulates the bittersweet conclusion of LBRY’s remarkable journey within the crypto space.
Following the announcement, members of the cryptocurrency community offered their final words of support to the LBRY team. One X (formerly Twitter) user, Steve, expressed gratitude to LBRY for putting up a “good fight,” presumably referring to the battle with the SEC. Meanwhile, another user, archerships, suggested that LBRY’s network stood as one of the most valuable and practical blockchain-based platforms available.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
