Facing a judgment from the federal government and encumbered with significant debts, LBRY Inc., the blockchain-based publishing company, has signaled its intent to terminate operations. This announcement, shared via a blog post hosted on Odysee, arrives in the aftermath of a contentious legal battle with the U.S. Securities and Exchange Commission (SEC). The post marks the end of an era for LBRY, as they bid farewell to their supporters and the digital publishing community.
Debts and Legal Struggles Push LBRY Inc. to Cease Operations, but LBRY Network and Odysee Remain
The latest blog post paints a somber picture of LBRY Inc.’s current situation. Burdened with debts to the SEC, their legal team, and a private debtor, the company has found itself in an untenable position. Their assets, including their flagship platform Odysee, are now set to enter receivership. As a final stroke, all executives, employees, and board members have tendered their resignations.
Though LBRY Inc. faces its sunset, the LBRY network stands on a different footing. Being decentralized and powered by open-source code, its fate is largely in the hands of its users. The company’s post raises concerns about the network’s potential obscurity, emphasizing the need for active participation to keep it alive.
The blog post adds:
The truth is that even writing this post fills us with anxiety. Everything we say is being scrutinized by people with immense resources that aren’t big fans of us, free speech, or any technology that enables dissent. And if we violate another one of the United States’ incredibly clear and easy-to-follow laws, we might end up in jail.
Despite the challenges, LBRY stated that Odysee continues to thrive, serving over 6 million users monthly. As LBRY’s most valuable asset, its future ownership remains uncertain. While the platform’s allegiance to the LBRY network has been strong, it remains to be seen if it will transition away in the future. Moreover, the U.S. securities regulator is intensifying its scrutiny on various crypto and blockchain-related endeavors, ramping up enforcement measures.
The news follows LBRY’s court document filed in September, indicating their intention to challenge the SEC’s recent win in court. In a decision from November 2022, a New Hampshire district court sided with the SEC and found that LBRY had characterized its digital assets as securities or “investment contracts.” Yet, as LBRY begins to phase out its operations, it seems this planned appeal has been shelved.
How do you feel about LBRY throwing in the towel this week? Dive into the discussion and let us know your views on the matter in the comments below.
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