- 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.
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:
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.
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