Coinspeaker
LBRY Bids Farewell, Shutting Down after Losing SEC Case
Cryptocurrency firm LBRY has announced that it will cease operations and shut down following a legal battle with the Securities and Exchange Commission (SEC).
LBRY was sued by the SEC in 2021 for allegedly conducting an unregistered securities offering by selling its LBRY Credits (LBC) cryptocurrency. The final ruling was in SEC’s favor as a US judge required LBRY to pay over $111,000 in fines for violating securities laws.
Following this judgment, the blockchain company initially decided to appeal the ruling, as reported in a letter to Coindesk. They argued that the court ruling was incorrect and unjust and could potentially harm the cryptocurrency industry. However, the most recent announcement signals the company’s official conclusion of the case with the SEC after choosing not to pursue the appeal, ultimately leading to the company’s shutdown.
LBRY Inc. is winding down.
The LBRY network is unaffected.
Odysee and other assets will undergo a legal process to satisfy debts, but Odysee has a bright future ahead.
Thank you to everyone who fought with us for online freedom.
A final goodbye post is in the first reply.
— LBRY ? (@LBRYcom) October 19, 2023
In light of the SEC judgment, LBRY announced that all of its executives, staff members, and board directors had resigned. According to LBRY’s statement, the company will now focus on addressing any remaining legal obligations before completely ceasing operations.
Plummeting Value of LBC Cryptocurrency
After a dramatic 2022, LBC has experienced a significant decline from its February high of $0.03. By August, it was already trading at $0.006. Although it briefly rose to $0.01 in September with hopes of a comeback against the SEC, thanks to community support, its struggles have continued, with the coin’s value dropping to $0.007. Following the company’s final decision, we anticipate that the price of its cryptocurrency will continue to decline as community support is expected to wane, and users withdraw their funds. LBRY acknowledged its eight-year journey in the cryptocurrency sector but concluded it could not move forward given the circumstances of the SEC case.
LBRY CEO Jeremy Kauffman has also announced that he is not involved with the company again but hopes to start another venture in the near future. He said:
“Officially done with any involvement with @lbrycom on the downside I didn’t make any money, but on the upside every corporate press outlet has branded me a dangerous thought criminal for life. I expect to start another venture in the near future, but as of today am available for mercenary work mostly depending on whether it’s actually interesting.”
Broader Industry Impacts
The precedent set by the court decision is seen as significant for blockchain companies and cryptocurrencies. The company that once represented promise as an innovator now faces closure due to its regulatory battle, marking a dramatic fall for the former leader in the industry. For a firm that symbolized innovation in the cryptocurrency sector, the legal unraveling at the hands of the SEC signifies a disappointing end to LBRY’s operations. The SEC case reinforces the need for crypto companies to adhere to securities laws and regulations, although it is largely unclear.
