LBRY, the blockchain company responsible for creating the LBRY blockchain, has delivered its final message to the crypto community, acknowledging that it is no longer able to continue operations due to debts totaling several million dollars. In an official statement on the LBRY-powered video-sharing website Odysee and shared on social media platform X (formerly Twitter), the LBRY team expressed their gratitude to those who supported their mission for online freedom before bidding farewell.
The company confirmed that while LBRY Inc., the corporate entity behind the project, will be winding down, the LBRY network itself remains unaffected. Assets such as Odysee will undergo a legal process to settle the outstanding debts, but the platform is expected to have a bright future ahead. The LBRY team emphasized that the network will continue to operate, as its blockchain is open-source and decentralized. As long as blocks are mined, LBRY will persist.
LBRY attributed its demise to debts owed to various parties, including the Securities and Exchange Commission (SEC), its own legal team, and a private debtor. The company confirmed that it had lost a judgment to the federal government and faced insurmountable financial obligations, leading to its decision to shut down. LBRY had initially announced its intention to wind down in July after the SEC secured a final judgment against the company. While the SEC had initially sought a substantial penalty of $22 million, it eventually reduced this amount to $111,000 after recognizing that LBRY was incapable of paying the full sum.
In what appeared to be a turnaround in September, LBRY filed a notice of appeal against the SEC, generating hope among supporters. However, the company’s latest statement revealed that it has abandoned its plans for an appeal and is no longer pursuing legal action against the regulator. Consequently, LBRY’s executives, employees, and board members have all resigned, now focusing solely on fulfilling any remaining legal obligations.
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LBRY’s departure prompted an outpouring of support and appreciation from the crypto community. Users on X expressed their gratitude to the LBRY team for putting up a “good fight” against the SEC, highlighting the platform’s usefulness as one of the most valuable blockchain-based applications available.
Community members on Odysee also pledged their commitment to supporting the continuation of the platform. As the LBRY blockchain remains decentralized and open-sourced, it will continue to operate as long as mining activities persist. Odysee, in particular, has attained significant success, serving over 5.3 million unique users on a monthly basis between January and April of 2023. This makes it the most popular decentralized social media platform in the market, according to CoinGecko.
Although LBRY’s journey may have ended on a somber note, Jeremy Kauffman, the former CEO of LBRY, expressed his gratitude for the company’s eight-year tenure in the cryptocurrency industry. Acknowledging the significant challenges faced, Kauffman acclaimed the journey as a “happy” one, despite the unfavorable outcome.
LBRY’s struggles and ultimate shutdown serve as a reminder of the ongoing regulatory challenges faced by the crypto industry. The aftermath of LBRY’s demise is likely to have far-reaching consequences, emphasizing the necessity for clear and favorable regulations to ensure the growth and stability of the sector. The crypto community will continue to navigate these challenges, striving for innovation and progress in the pursuit of shaping the future of decentralized technologies.
