LBRY announces shutdown in “final post”

October 22, 2023 08:35 AM PDT | By Invezz

LBRY announces shutdown in “final post” — Image source: Invezz

LBRY’s “final post”

Having lost the regulatory battle in the SEC lawsuit that claimed the LBRY Credits were a security, the blockchain company sees no viable route to continued operations.

“LBRY Inc. must die, there is no escaping this,” the LBRY team said in an announcement published on October 20. The blockchain firm noted that its legal battle with the SEC has left it with debts amounting to several million dollars.

“LBRY Inc. has debts to the SEC, its legal team, and a private debtor that it cannot pay. Its assets, including Odysee, are being placed into receivership. As of this post, all LBRY executives, employees, and board members have resigned. All will be doing what is required to satisfy any outstanding legal requirements, but no more.”

LBRY was fined $111,000 after a final judgement was returned in favour of SEC in July, with the penalty reduced from the originally sought $22 million after the regulator recognized the fact the company was defunct and unable to pay.

The latest word from LBRY includes communication that the company will not pursue an appeal against the SEC, a move it had signalled in September with a notice of appeal.

While LBRY Inc. “must die”, the team believes the LBRY network should be able to continue given its open-source and decentralised. But that might only be possible if “enough people use it” as “decentralization isn’t magic.”

LBRY’s video-streaming app Odysee, which CoinGecko ranked as the top Web3 social media app in a recent research report, is expected to live on.

“Odysee and other assets will undergo a legal process to satisfy debts, but Odysee has a bright future ahead. Thank you to everyone who fought with us for online freedom,” a post on X reads.

Available data shows the platform has over 6 million monthly users.

The post LBRY announces shutdown in “final post” appeared first on Invezz.

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