Blockchain Publishing Company LBRY Announces Shutdown Following Court Judgment and Debts

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Blockchain Publishing Company LBRY Announces Closure After Legal Battle and Debt Burden

LBRY Inc., the blockchain-driven publishing enterprise, has made a solemn declaration of its intention to cease operations, citing a recent court ruling and a substantial financial liability. This significant announcement was disseminated through a blog post featured on Odysee, marking the culmination of a contentious legal tussle with the U.S. Securities and Exchange Commission (SEC). This development signals the end of an era for LBRY, as they bid farewell to their loyal supporters and the digital publishing community.

Financial Obligations and Legal Controversy Force LBRY Inc. to Halt Operations, but LBRY Network and Odysee Persist

The most recent blog entry paints a bleak portrait of LBRY Inc.’s present predicament. Weighted down by financial obligations to the SEC, their legal counsel, and a private creditor, the company finds itself in an untenable position. Their assets, including their flagship platform Odysee, are now poised to undergo receivership. As a final measure, all executives, employees, and board members have tendered their resignations.

However, it is worth noting that while LBRY Inc. is nearing its closure, the LBRY network operates under a different paradigm. As a decentralized entity propelled by open-source code, its destiny is primarily determined by its user base. The company’s announcement underscores concerns regarding the potential fading into obscurity of the network, underscoring the necessity for active user engagement to sustain its vitality.

In the blog post, it is emphasized:

The reality is that the composition of this post is fraught with trepidation. Every word we convey is under rigorous scrutiny by entities with considerable resources, who harbor reservations about us, the principle of free speech, or any technology facilitating dissent. A misstep in adhering to one of the United States’ unequivocal and comprehensible regulations could lead to legal repercussions.

Despite the formidable challenges, LBRY has affirmed that Odysee continues to flourish, serving more than 6 million users on a monthly basis. As LBRY’s most prized asset, the future ownership of Odysee remains uncertain. While the platform has exhibited a strong allegiance to the LBRY network, the prospect of a transition away from it in the future remains uncertain. Moreover, the U.S. securities regulator is intensifying its oversight of various cryptocurrency and blockchain-related ventures, escalating enforcement actions.

This development follows LBRY’s submission of a court document in September, signaling their intention to contest the SEC’s recent legal victory. In a ruling delivered in November 2022, a New Hampshire district court sided with the SEC, affirming that LBRY had characterized its digital assets as securities or “investment contracts.” However, as LBRY embarks on winding down its operations, it appears that their planned appeal has been shelved.

What are your thoughts on LBRY’s decision to discontinue its operations this week? We invite you to engage in the discourse and share your perspectives on this matter in the comments section below.

Frequently Asked Questions (FAQs) about LBRY Inc. Shutdown

More about LBRY Inc. Shutdown

• [LBRY Inc. Blog Post on Odysee](link to the blog post)
• [U.S. Securities and Exchange Commission (SEC)](link to SEC website)
• [New Hampshire District Court Ruling (November 2022)](link to the court ruling if available)
• [Odysee Platform](link to Odysee platform)
• [Cryptocurrency Industry Regulations](link to relevant resources on cryptocurrency regulations)