The firm behind the decentralized content platform LBRY said his days are likely numbered after his recent loss against the US Securities and Exchange Commission (SEC) in court..
It is specifically LBRY Inc that must die, the LBRY protocol and blockchain will continue. pic.twitter.com/SWwbqTq9In
—LBRY (@LBRYcom) November 29, 2022
It is specifically LBRY Inc that must die; the LBRY protocol and the blockchain will continue. pic.twitter.com/SWwbqTq9In
The SEC initially took LBRY Inc to court in March 2021 over its LBRY Credit (LBC) tokens, alleging that the firm had been making unregistered security offerings since 2016..
The SEC finally won that battle last month, on November 7.after a judge found the tokens to be securities, which was a major blow to the industry.
By providing an update on the state of the business via Twitter on November 30, LBRY Inc explained that the company will “probably die in the near future”, however, the underlying protocol and the blockchain will continue.:
“We would like to be frank about the fact that LBRY Inc. will probably die in the near future. We hope LBRY’s mission continues, but the company itself has died from legal debts and the SEC.”
LBRY Inc essentially provides a blockchain-based alternative to YouTube that offers less stringent censorship policies on your content.. The platform also makes it easy to tip content creators directly on LBC, as opposed to the standard ad revenue sharing model.
In the SEC’s case against LBRY, it claimed that LBC was designed for pure speculation, while LBRY had argued that the tokens served key utility functions for its platform.such as tipping, posting, buying and boosting video content.
Although the SEC won the legal dispute, LBRY suggested on Twitter earlier this week that the government agency has remained difficult to deal with in terms of settlement negotiations..
In response to a post about your November 29 status report on your ongoing negotiations with the SEC, the company he pointed who offered the SEC “everything we’ve got,” but this proposal kept getting rejected.
Defense attorney and former federal prosecutor James Filan questioned whether this was because the SEC was seeking more drastic stipulations on future LBC sales..
“Let me guess. It’s because they want a Consent Judgment that also includes a specific agreement that every sale, even in secondary markets, is a sale of a security,” he said..
In response, the LBRY Inc team limited itself to posting an emoji showing that their lips are sealed.
—LBRY (@LBRYcom) November 29, 2022
It is also worth noting that Filan, who has 131,000 followers on Twitter, has been keeping up with the LBRY case due to his long-running comment on the ongoing dispute between the SEC and XRP creators Ripple Labs..
The cases are similar in nature to one another in that the SEC has aggressively lobbied for both LBRY and XRP to be considered securities in court.. Since these are some of the first major court cases involving cryptocurrencies and securities, the results could be seen as benchmarks for future rulings in the future.
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