LBRY: Company ‘killed by Legal Debt and the SEC’

The company behind blockchain publishing platform LBRY wrote its own obituary on Twitter yesterday after losing a battle with the SEC earlier this month.

In tweets Monday, LBRY said, the company was “killed by legal debt and SEC debt.” In a follow-up tweet, the company clarified that it was LBRY Inc that “must die” though “the LBRY protocol and blockchain will live on.”

Earlier this month, LBRY, Inc. , which created the LBRY protocol and blockchain, Lost a Many years of struggle with SEC.

LBRY CEO Jeremy Kaufman said Decrypt That the company didn’t yet have an exact number for the SEC’s fine, but the regulator was paying a $20 million fine.

The regulatory body He said The company offered and sold unregistered securities in the form of LBRY tokens. LBRY, Inc. claimed that its tokens were not securities, but its native LBC token “serves as a digital currency that is an important component of the LBRY Blockchain.”

Judge Peter Barbadoro sided with the SEC on November 7.

β€œAs all information provided privately to the SEC is no longer leaking, we want to be mindful of the fact that LBRY Inc. will likely die in the near future,” the company said via Twitter yesterday.

She added, “We expect LBRY’s mission to continue, but the company itself has been killed because of the SEC’s legal responsibilities and responsibilities.”

LBRY is a blockchain-based platform that allows users to share video content without third party intermediaries. It previously described itself as a decentralized YouTube of sorts and bragged about it There is no oversight on the platform.

LBRY, Inc. sold digital assets in the form of LBC tokens to raise funds for the platform from at least July 2016 to February 2021, the SEC said. Last March, the SEC alleged that LBRY received $12.2 million from the token sale β€” but did not register it as collateral.

experts before Tell Decrypt That ruling gives the Securities and Exchange Commission (SEC) a step to β€” if it wants to β€” classify all cryptocurrencies and target digital asset exchanges like Coinbase in the future.

Kaufman He said Last month that β€œthe SEC has amply demonstrated that it seeks to harm or destroy the cryptocurrency industry in the United States.”

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