BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

LBRY Concedes to Total Shutdown Citing Loss to SEC and Millions in Debt

by BlockNews.com Team
October 27, 2023
in Breaking News, Business, Crypto
A A
LBRY Concedes to Total Shutdown Citing Loss to SEC and Millions in Debt
1
SHARES
Share on TwitterShare on Reddit
  • LBRY Inc has lost its lawsuit against the SEC and is shutting down services due to millions in debt. The company’s executives, employees, and board members have resigned.
  • The SEC sued LBRY last year for violating securities laws by selling its LBC token. LBRY lost and was ordered to pay over $1 million in fines. Its recent appeal attempt has now been halted.
  • LBRY’s assets like Odysee are being placed in receivership. The company warned the LBRY blockchain may die without enough continued usage and adoption from the community.

LBRY Inc, the developer of the LBRY blockchain, is shutting down services because it lost a lawsuit to the US Securities and Exchange Commission (SEC) and it has several million dollars in debts. LBRY announced that its executives, employees and board members have resigned while its assets like Odysee are being placed in receivership.

LBRY Loses Lawsuit Against SEC

Last year, the SEC sued LBRY for violating federal securities laws by selling its LBRY credits (LBC) token. The regulator initially obtained a summary judgment that would have compelled LBRY to pay a hefty $22 million fine which was subsequently reduced to a more modest $1,116,414. While the company attempted a comeback last month by filing a notice of appeal against the regulator, its current decision means that the move has been halted and its operations would finally shut down.

🚨 ICYMI: LBRY @LBRYcom ceases operations following lawsuit loss to the SEC.

Accumulating several million dollars of debt is cited as a central reason.

Their $LBC token plummeted to all-time lows as a result, currently -31% on the day. pic.twitter.com/CDbYZ15qcC

— BlockNews.com (@blocknewsdotcom) October 20, 2023

Millions in Debt and Assets Placed in Receivership

In its Oct 19 statement, LBRY explained that it owed several million dollars in debt to its legal team, private debtors and the SEC. Additionally, the company said its executives, employees and board members have resigned while its assets like Odysee are being placed in receivership.

What Happens to the LBRY Blockchain

LBRY Inc stated that the LBRY blockchain is a decentralized blockchain with open-sourced codes that might continue to operate if it is being used. However, the company warned that “The LBRY network might die too. Decentralization isn’t magic – it only works if enough people use it.”

LBRY blockchain is a decentralized file-sharing network that has over 17 million registered identities and more than 30 million pieces of published content. Odysee, a platform on the blockchain, is a leading decentralized social media site surpassing competitors like Mastodon and BlueSky with a monthly user base exceeding 6 million.

Conclusion

The shutdown of LBRY Inc serves as a cautionary tale that decentralization alone cannot sustain a blockchain network. For the LBRY blockchain to survive, it will need continued adoption and usage from its community. The ongoing legal battle with the SEC also highlights the regulatory risks facing blockchain projects, especially those that issue or sell tokens.

Tags: BlockchaincryptoLawsuitLBRYsecToken
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

$TAO Is Back With a Vengeance: Bittensor is About to Explode and Here is Why
Crypto

$TAO Is Back With a Vengeance: Bittensor is About to Explode and Here is Why

May 9, 2025
Crypto

Everything You Need to Know About $DOOD: A New Era for Doodles and Its Ecosystem

May 9, 2025
Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next
Crypto

Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next

May 8, 2025
Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement
Crypto

Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement

May 8, 2025
Stellar XLM Technical Indicators Suggest Imminent Breakout: Here is What You Need to Do
Crypto

Stellar XLM Technical Indicators Suggest Imminent Breakout: Here is What You Need to Do

May 8, 2025
$LTC in a Limbo: Is Litecoin Quietly Gearing Up for a Breakout?
Crypto

$LTC in a Limbo: Is Litecoin Quietly Gearing Up for a Breakout?

May 8, 2025
Load More

Related News

Hedera on the Move: Why Analysts Are Eyeing a Major $HBAR Comeback?

Hedera on the Move: Why Analysts Are Eyeing a Major $HBAR Comeback?

May 9, 2025
$TAO Is Back With a Vengeance: Bittensor is About to Explode and Here is Why

$TAO Is Back With a Vengeance: Bittensor is About to Explode and Here is Why

May 9, 2025

Everything You Need to Know About $DOOD: A New Era for Doodles and Its Ecosystem

May 9, 2025
Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next

Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next

May 8, 2025
Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement

Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement

May 8, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Newsletter
  • Advertise
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX Gary Gensler grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.