LBRY Shuts Down After Costly Legal Loss to The SEC
The post LBRY Shuts Down After Costly Legal Loss to The SEC appeared on BitcoinEthereumNews.com. Sadly the cryptocurrency platform LBRY has announced it is ceasing operations following a legal defeat to the U.S. Securities and Exchange Commission (SEC). The regulator accused LBRY of selling its native LBC tokens in an unregistered securities offering. Keypoints LBRY Inc. announced it is shutting down after losing a lawsuit filed by the SEC last year alleging illegal securities sales. The company owes millions in legal fees and debts, including to the SEC which was awarded a $111k fine. LBRY had tried appealing but is now halting efforts. The SEC accused LBRY of selling LBC tokens in an unregistered securities offering. A judge ruled LBC could be a security based on how it was sold. LBRY created the decentralized LBRY network and Odysee video platform. It says the network may continue since it is open source, but could falter without company support. The news comes as Ripple scored a big win with the SEC agreeing to drop charges against its executives over XRP sales. Some see this as the SEC being on the backfoot. Unlike Ripple, LBRY lacked the resources to continue fighting the regulator in court. This highlights disparities in crypto companies’ abilities to take on the SEC. Critics argue the SEC overreached in targeting a small company like LBRY instead of focusing on major failures in crypto. But the agency still extracted a settlement. In a statement, LBRY Inc. said the combination of debts owed to the SEC, its legal team, and private creditors totaling several million dollars had forced the company to shut down. This comes after the SEC was awarded a reduced fine of $111,614 against LBRY, which the company had initially sought to appeal. LBRY Inc. is winding down. The LBRY network is unaffected. Odysee and other assets will undergo a legal process to satisfy…
The post LBRY Shuts Down After Costly Legal Loss to The SEC appeared on BitcoinEthereumNews.com.
Sadly the cryptocurrency platform LBRY has announced it is ceasing operations following a legal defeat to the U.S. Securities and Exchange Commission (SEC). The regulator accused LBRY of selling its native LBC tokens in an unregistered securities offering. Keypoints LBRY Inc. announced it is shutting down after losing a lawsuit filed by the SEC last year alleging illegal securities sales. The company owes millions in legal fees and debts, including to the SEC which was awarded a $111k fine. LBRY had tried appealing but is now halting efforts. The SEC accused LBRY of selling LBC tokens in an unregistered securities offering. A judge ruled LBC could be a security based on how it was sold. LBRY created the decentralized LBRY network and Odysee video platform. It says the network may continue since it is open source, but could falter without company support. The news comes as Ripple scored a big win with the SEC agreeing to drop charges against its executives over XRP sales. Some see this as the SEC being on the backfoot. Unlike Ripple, LBRY lacked the resources to continue fighting the regulator in court. This highlights disparities in crypto companies’ abilities to take on the SEC. Critics argue the SEC overreached in targeting a small company like LBRY instead of focusing on major failures in crypto. But the agency still extracted a settlement. In a statement, LBRY Inc. said the combination of debts owed to the SEC, its legal team, and private creditors totaling several million dollars had forced the company to shut down. This comes after the SEC was awarded a reduced fine of $111,614 against LBRY, which the company had initially sought to appeal. LBRY Inc. is winding down. The LBRY network is unaffected. Odysee and other assets will undergo a legal process to satisfy…
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