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After a lengthy legal battle with the US Securities and Exchange Commission, LBRY has followed through with plans to close up shop.<\/p>\n
In a farewell post, the company blamed its closure on a lost judgment to US regulators, adding it could no longer meet its financial obligations.\u00a0<\/p>\n
The development follows LBRY\u2019s previous notice of appeal in September against a court ruling favoring the SEC, a move that was seen as a last-ditch attempt to keep the company afloat.<\/p>\n
As a blockchain-based content-sharing platform, LBRY aimed to disrupt traditional digital publishing platforms via its decentralized protocol.<\/p>\n
However, the firm fell under the SEC\u2019s scrutiny<\/a> for alleged securities violations concerning its LBRY Credit tokens (LBC). The company argued against classifying its token as a security.<\/p>\n Despite these efforts, the company was dealt a crippling blow when the court sided with the SEC<\/a> following the agency\u2019s lawsuit against it in March 2021.\u00a0<\/p>\n Read more:<\/strong> LBRY files notice of appeal against court July decision that buckled the project<\/a><\/p>\n The regulator initially sought $22 million from the platform, though that was scaled back to just $111,000 after the SEC acknowledged its financial struggles.<\/p>\n LBRY\u2019s existing debts include obligations to the SEC, its legal team and a private debtor. With no way to cover these, its assets, including its app Odysee, are being placed into receivership.\u00a0<\/p>\n All board members, executives, and employees have resigned. The company\u2019s domain, social media handles and GitHub repository will also be utilized to satisfy the debts, according to the post.<\/p>\n The LBRY<\/a> network itself remains active, given its decentralized structure. Over 1.7 million identities and 30 million pieces of content have been published to the LBRY blockchain.<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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