The LBRY Blockchain Project Announces Closure Due to Debt
The LBRY blockchain project has announced its closure, citing several million dollars of debt that has made it impossible for the firm to continue operating. The project team revealed their decision in a farewell message on social media. The debt includes amounts owed to the U.S. Securities and Exchange Commission (SEC), the legal team, and a private debtor.
Legal Battle and Appeal
In July, the LBRY team first announced the closure after losing a judgment to the SEC. Initially seeking $22 million in recovery, the Commission reduced it to $111,000 when it realized that the defunct firm could not pay. In September, LBRY Inc. filed an appeal against the court’s decision but has now stated that they do not intend to continue with the appeal process.
Resignations and Support
LBRY Inc.’s directors, employees, and board members have resigned and are focused on meeting outstanding legal requirements. The closure of LBRY has garnered support from the crypto community, who expressed admiration for the project team’s efforts and expressed regret over its closure.
Hot Take: LBRY Blockchain Project Shuts Down Due to Debt
The LBRY blockchain project’s closure is a significant development in the crypto world. The project team’s announcement highlights the challenges faced by blockchain projects in managing financial obligations and legal battles. It serves as a reminder of the importance of financial sustainability and compliance in the industry. The support from the crypto community demonstrates the impact and recognition that LBRY had achieved during its existence. As the project winds down, it leaves behind lessons for other blockchain projects to navigate regulatory hurdles effectively and maintain financial stability.
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