- LBRY has officially bowed out of the industry.
- The company won’t appeal its loss against the SEC.
- All staff members have resigned.
LBRY Inc, the company behind the LBRY blockchain, has thrown in the towel against the U.S. Securities and Exchange Commission (SEC) and bowed out of the industry, according to a “last message” shared with users on Twitter (X).
The development comes after LBRY Inc. originally announced a wind-down plan on July 11 following a final court judgment in favor of the securities watchdog. The SEC downgraded penalties against LBRY from $22 million to $111,000 due to the company’s financial woes.
While the company vowed to fight back in a potential appeal, that seems not to be the case anymore.
Last Message to Community
Stating that “this will be our last post,” LBRY Inc. announced on October 19 that the company would be shutting down due to “several million dollars” of debts that had made continued operations impossible.
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“LBRY Inc. must die; there is no escaping this. It has lost a judgment to the federal government, has several million dollars in debts, and has pledged to shut down,” the company stated.
Although LBRY Inc. will be no more, the company reiterated that the LBRY network would remain unaffected as Odysee and other assets undergo a legal process to satisfy debts. Notably, the company said, “Odysee has a bright future ahead.”
The LBRY community has received this news with mixed sentiments, given that the company seemed to have backtracked from its July 11 decision when it filed a notice of appeal against the U.S. securities regulator on September 7.
No Appeal Against the Regulator as LBRY Team Resigns
While observers were keen to see how LBRY would have rebutted SEC’s win in the intended appeal, the company clarified that it would not be pursuing further legal action against the regulator.
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The company also stated that its staff, including employees, executives, and board members, had resigned to focus on “satisfying outstanding legal requirements.”
Read how LBRY first lost the case against the SEC:
LBRY (LBC) Plummets More Than 30% After Losing Case Against the SEC
Despite bowing out, LBRY had the industry’s support against the SEC. Read more:
Pro-XRP Lawyer Deaton Enters LBRY Case as Amicus Curiae
