In a somber announcement today, LBRY Inc., the blockchain company behind the LBRY blockchain and Odysee video-sharing platform, declared the end of its operations, leaving the cryptocurrency community in shock. Citing insurmountable debts, including a judgment from the U.S. Securities and Exchange Commission (SEC), LBRY expressed its inability to continue its operations. This announcement marks the culmination of a tumultuous journey that began with legal challenges and ended with financial constraints.
LBRY’s decision to cease operations comes as a result of a daunting financial predicament. The company revealed that it owed “several million dollars” to various entities, including the SEC, its legal team, and a private debtor. These financial obligations have rendered LBRY Inc. financially incapacitated, ultimately leading to the difficult decision to shut down.
LBRY bows out amid SEC judgment: A cryptocurrency farewell
The SEC’s involvement in this ordeal dates back to July when the regulator secured a judgment in its favor against LBRY. Originally seeking a penalty of $22 million, the SEC later revised its claim to $111,000 after realizing that LBRY Inc. lacked the resources to pay the initial amount. Despite initial signs of a potential appeal, LBRY has now decided to abandon its legal battle against the SEC.
As part of its closure, LBRY Inc. also announced that its executives, employees, and board members have all resigned from their positions. Their primary focus is now on fulfilling any remaining legal obligations associated with the company’s operations. This development signifies the end of an era for LBRY, which had been a prominent player in the cryptocurrency industry for eight years.
Jeremy Kauffman, the former CEO of LBRY, expressed his sentiments on the company’s journey in a recent post, stating, “It wasn’t a happy ending, but it was a happy journey.” Kauffman’s reflection highlights the significant role LBRY played in the cryptocurrency space during its existence.
The cryptocurrency community responded to LBRY’s farewell announcement with an outpouring of support and gratitude. Many users expressed their appreciation for LBRY’s efforts to champion online freedom and its resilience in the face of regulatory challenges.
One user, identified as “Steve,” commended LBRY for putting up a “good fight,” presumably against the SEC. Another user, “archerships,” lauded LBRY’s network as one of the most valuable blockchain-based platforms available.
In the comments section of LBRY’s post on Odysee, community members expressed their willingness to continue supporting the Odysee platform, highlighting their commitment to keeping it operational despite the challenges faced by LBRY Inc.