LBRY Inc., a blockchain publishing platform, has revealed that it is shutting down its operations. Overwhelming debts owed to the U.S. Securities and Exchange Commission (SEC), its legal team, and private creditors.
The statement from LBRY Inc. is clear and direct: “LBRY Inc. must die, there is no escaping this.” The company has faced a judgment against it by the federal government and carries debts amounting to several million dollars, leaving them with no other option but to cease their activities.
While the company is shutting down, the LBRY blockchain itself will continue to exist. This blockchain, which hosts over 30 million content pieces, will persist as long as mining operations continue.
However, there’s a catch. LBRY’s primary app, Odysee, which relies on the blockchain, plays a crucial role in making this content accessible. If Odysee were to discontinue its use of the blockchain, content not actively shared by other users would no longer be accessible.
The trouble began in March 2021 when the SEC filed a complaint against LBRY, accusing them of raising $11 million through the sale of LBC, LBRY’s native cryptocurrency, which the SEC deemed an “unregistered security.”
This legal battle culminated in a summary judgment in favor of the SEC on November 7, classifying the initial sale of LBC as an investment contract.
Initially, the SEC sought a hefty $22 million penalty from LBRY Inc. However, considering the company’s financial constraints, the fine was later reduced to $111,614 in May.