LBRY, a blockchain file-sharing and payment network, has announced that it is terminating its operations due to significant financial obligations. In its final message to the crypto community on its video-sharing website, LBRY acknowledged that it owes several million dollars to the SEC, its legal team, and a private debtor. This debt, combined with mounting financial challenges, has forced LBRY to cease operations.
LBRY clarified that all of its executives, employees, and board members have resigned, and they are now focused on fulfilling their legal obligations. The company’s assets, including its flagship application Odysee, are now under the supervision of the financial regulator.
LBRY had previously declared its intention to shut down due to a legal conflict with the SEC. The court ruled in favor of the SEC in November 2022 and issued a final ruling in July, which included a fine that LBRY was required to pay.
In a surprising turn of events, LBRY filed an appeal against a regulatory authority in September, raising questions about a potential change in direction. However, this appeal did not alter the company’s ultimate decision to terminate its operations.
The SEC initiated a lawsuit against LBRY in March 2021, accusing the company of selling unregistered securities. The SEC’s lawsuit also claimed that LBRY’s token, LBC, qualified as a security under the 1933 Securities Act. The SEC won the case in November 2022, and the court ruled that LBC was indeed a security.
Despite LBRY’s challenges, the crypto community has shown strong support for Odysee and its open-source blockchain network. Community members have expressed gratitude and praised LBRY for its efforts.
In conclusion, LBRY’s termination signifies the end of its journey in the cryptocurrency industry, marked by financial difficulties and a legal battle with the SEC. The crypto community remains steadfast in their support for LBRY and its contributions to the blockchain space.