LBRY Inc., the developer of the LBRY blockchain, is shutting down services because it lost a lawsuit to the U.S. Securities and Exchange Commission (SEC), and it \u201chas several million dollars in debts.\u201d<\/p>\n
In an Oct. 19 statement, <\/a>LBRY explained that it owed several million dollars in debt to its legal team, private debtors, and the SEC. Additionally, the company said its executives, employees, and board members have resigned, while its assets, like Odysee, are being placed in receivership.<\/span><\/p>\n Meanwhile, this marks the company\u2019s second declaration of its intent to cease operations. Its initial announcement in July revealed that it was in the process of \u201cwinding down\u201d as mandated by the court\u2019s order in its case with the SEC.<\/p>\n Last year, the SEC sued<\/span><\/a> LBRY for violating federal securities laws by selling its LBRY credits (LBC<\/a>) token. The regulator initially obtained a summary judgment that would have compelled LBRY to pay a hefty $22 million fine, which was subsequently reduced to a more modest $111,614.<\/p>\n While the company attempted a comeback<\/a> last month by filing a notice of appeal against the regulator, its current decision means that the move has been halted, and its operations would finally shut down. It said:<\/p>\n \u201cLBRY Inc. must die, there is no escaping this. It has lost a judgment to the federal government, has several million dollars in debts, and has pledged to shut down.\u201d<\/p>\n<\/blockquote>\n News of the decision has negatively impacted the LBC token, which has tanked by more than 35% in the last 24 hours to $0.00748 as of press time, according to CryptoSlate\u2019s<\/em> data<\/a>.<\/span><\/p>\n LBRY\u00a0 Inc. stated that the LBRY blockchain is a decentralized blockchain with open-sourced codes that might continue to operate if it is being used.<\/p>\n However, the company warned that:<\/p>\n \u201cThe LBRY network might die, too. Decentralization isn\u2019t magic \u2013 it only works if enough people use it.\u201d<\/span><\/p>\n<\/blockquote>\n LBRY blockchain is a decentralized file-sharing network that has over 1.7 million registered identities and more than 30 million pieces of published content. Odysee, a platform on the blockchain, is a leading decentralized social media site, surpassing competitors like Mastodon and BlueSky, with a monthly user base exceeding 6 million.<\/p>\n The post LBRY concedes to total shutdown, citing loss to SEC and millions in debt<\/a> appeared first on CryptoSlate<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" LBRY Inc., the developer of the LBRY blockchain, is shutting down services because it lost a lawsuit to the U.S. Securities and Exchange Commission (SEC), and it \u201chas several million dollars in debts.\u201d In an Oct. 19 statement, LBRY explained that it owed several million dollars in debt to its legal team, private debtors, and […]<\/p>\n","protected":false},"author":2,"featured_media":178160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-178159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/178159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=178159"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/178159\/revisions"}],"predecessor-version":[{"id":178161,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/178159\/revisions\/178161"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/178160"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=178159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=178159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=178159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
What happens to LBRY?<\/h2>\n
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