Web3 Publishing LBRY Announces Closure Due to “SEC Debt”

November 30, 2022 at 09:51 AM GST 2 mins read Altcoin News

Web3 publishing platform LBRY announced its closure due to legal fees and SEC debts.
SEC won the lawsuit against LBRY on grounds similar to the former’s lawsuit against Ripple.
LBRY as a company will close but the LBRY protocol and blockchain will continue.

Web3-based publishing platform LBRY announced its closure, citing “legal and SEC debts” as the reason.

Since any information given privately to the SEC ends up leaking, we'd like to be upfront about the fact that LBRY Inc. will likely be dead in the near future.

We expect the LBRY mission to continue on, but the company itself has been killed by legal and SEC debts.
— LBRY 🚀 (@LBRYcom) November 29, 2022

The company, based in the US, was engaging the US Securities and Exchange Commission (SEC) in a lawsuit. However, earlier this November, the SEC won the lawsuit against LBRY. According to the lawsuit, LBRY has sold securities in the form of its native token LBRY Credits (LBC) which the company did not register with the SEC.

This is similar to the SEC vs Ripple lawsuit, in which the latter is alleged to have sold XRP back in 2017 without registering with the SEC.

However, LBRY clarified that LBRY Inc., the company or the business entity, is the only thing that will cease to exist. The platform’s content sharing and publishing services, powered by the LBRY protocol and blockchain, will live on.

It is specifically LBRY Inc that must die; the LBRY protocol and blockchain will continue.”
The other tweet said:

People started commenting on the post, expressing their sympathies. Some also asked whether Odysee, a video streaming platform similar to YouTube that is powered by LBRY’s infrastructure, will continue. To this, LBRY said:

Odysee will be fine and has a bright future.
— LBRY 🚀 (@LBRYcom) November 29, 2022

LBRY and Ripple are not the only companies that are in a legal tussle with the SEC. Since 2017, the SEC has filed a lawsuit against over 200 crypto firms and personalities, including the deceased John McAfee.

Recommended News :

disclaimer read more

Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.