Blockchain Firm LBRY Ceases Operations, Cites Insurmountable Debt

cryptonews.com:

Blockchain file-sharing and payment network, LBRY, announced the termination of its operations, citing "several million dollars" in debts owed to the SEC, its legal team, and a private debtor.

On October 20th, the blockchain firm issued its final message to the crypto community on its video-sharing website Odysee and X, stating that "this will be our last post." In the heartfelt message the company shared, they acknowledged that they are unable to continue operations due to mounting financial challenges.

LBRY revealed that it owed several millions of dollars in debts to the SEC, its legal team, and a private debtor, which it was no longer able to pay.

“LBRY must be liquidated, there is no alternative. The company lost a judgment against the federal government, is several million dollars in debt and is now determined to no longer do business."

However, LBRY clarified that all of its executives, employees, and board members had resigned, and they are now dedicated to fulfilling their legal obligations. It also noted that its assets, including Odysee, its flagship application, are now placed under the watch of the financial regulator.

The company had previously declared its intention to cease operations due to a legal conflict with the SEC. This was after the court ruling in favor of the SEC in November 2022 and also made a final ruling in July, also adding that a fee must be paid to the SEC as a fine.

In a surprising turn of events, the LBRY community was taken aback in September when it appeared that LBRY had filed an appeal against a regulatory authority after facing a previous legal setback. This unexpected move raised questions about a potential change in direction, especially considering LBRY's previous statement following