“Our Last Post,” Cryptocurrency Company Gives Up Fight With SEC, Says Goodbye To Investors

The cryptocurrency market suffered another downturn with the announcement of the closure of LBRY, a blockchain solutions company that developed a kind of decentralized YouTube. The project cited a mountain of debt worth several million dollars as the reason for the decision.

On a statement published on Twitter (X) last Friday (20), the team behind LBRY lamented its end, stating that it would be the last message for investors.

The company faced massive debt from the US Securities and Exchange Commission (SEC) and its legal team.

It is worth remembering that LBRY’s decision to cease operations was not sudden. In late July, the company considered ceasing operations after receiving an unfavorable ruling from the SEC.

The initial fine proposed by the US regulator was as much as $22 million. However, after the company’s financial situation was reassessed, the amount was drastically reduced to $111,000.

A final farewell post

Last year, the SEC sued LBRY for violating US laws and selling its LBRY token (LBC). The regulator claimed the company had been sold “Millions of dollars in unregistered securities for investors” and sent a writ of mandamus against the company, prohibiting it from continuing to sell its LBC token and seeking reimbursement of “illegal profits” plus interest.

At the time, LBRY said the SEC’s allegations were “baseless” and that the agency “I was looking for blood.” The company further said that the lawsuit was part of a massive SEC campaign against the cryptocurrency industry.

Although the company has tried to get back on its feet by appealing the regulator, the current decision means that LBRY has grown tired of struggling with the SEC and has given up on everything.

“LBRY Inc. must die, there is no escape. We lost a lawsuit to the federal government, we have millions of dollars in debt and we are going bankrupt.” — says a message on Odysee.

Decentralized “Youtube”

Odyssey website
Odyssey website

LBRY is a blockchain-based file sharing and payment network that operates a decentralized content publishing platform. It gained attention for creating a decentralized YouTube.

Investors in the project had raised hopes in September when LBRY suggested a possible appeal of the SEC’s decision. However, these hopes have been dashed by the company’s recent statement that it will not continue with the call.

While many investors sent messages of solidarity and support, Jeremy Kauffman, LBRY’s former CEO, reflected optimistically on the company’s eight-year journey: “It wasn’t a happy ending, but it was a happy journey.”

Despite the closure of LBRY, the platform Odyssey and the LBRY blockchain remain live. The blockchain, which is open source and decentralized, will continue to function as long as there are miners.

This information provides light at the end of the tunnel for the more than 5 million users who use Odysee, cementing its position as the leading decentralized social media platform today.

Source: Live Coins