Key takeaways:
- The developers of the LBRY blockchain, LBRY Inc., have sent out their last letter to the crypto community amid debts of “several million dollars.”
- In addition to a private debtor, LBRY Inc. owes money to the SEC and its legal counsel.
The developers of the LBRY blockchain, LBRY Inc., have sent out their last letter to the cryptocurrency community, stating that they are unable to continue due to debts of “several million dollars.”
The LBRY Inc. team posted a statement on Odysee, a video-sharing website sponsored by LBRY, on October 20. The statement was also published on X. “This will be our last post,” the team said.
In addition to a private debtor, LBRY Inc. owes money to the SEC and its legal counsel. Receivership will be applied to its assets, including Odysee. The board members, executives, and staff of LBRY have all resigned as of this writing. Everyone involved will be doing their legal obligations, but nothing beyond that.
In an October 19 X post, LBRY said, “Thank you to everyone who fought with us for online freedom.”
Following a final ruling in favor of the SEC on July 11, LBRY first declared it would be closing in July. After learning the bankrupt company couldn’t afford the fine, the SEC reduced its original $22 million demand to $111,000 in order to meet its obligations.
The community was thrilled when it filed a notice of appeal against the regulator in September, potentially reversing the decision. However, the company just announced that it will no longer be pursuing its appeal against the SEC.
The company also announced that the board members, management, and staff of LBRY Inc. had resigned and are now solely focused on fulfilling any unfulfilled legal obligations.
Reflecting on LBRY’s eight years in the cryptocurrency space, the now-former CEO Jeremy Kauffman said in an October 19 X post, “It wasn’t a happy ending, but it was a happy journey.”
The developers stated on Odysee that LBRY’s blockchain is open-sourced and decentralized, meaning it will run as long as blocks are mined. However, they also stated:
“But the LBRY network might die, too. Decentralization isn’t magic – it only works if enough people use it.”
According to CoinGecko, Odysee served more unique users per month—5.3 million—than any other decentralized social media network available on the market between January and April of this year.
