LBRY Inc. Announces Closure, Issues Final Statement

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LBRY Inc. Announces Closure, Issues Final Statement

In a surprising turn of events, LBRY Inc. has made the difficult decision to cease its operations, primarily due to an overwhelming debt burden that rendered its continued existence untenable. The company has expressed its gratitude to all those who stood alongside them in their mission to champion online freedom.

LBRY Bids Farewell

LBRY Inc. has shared its final message with the cryptocurrency community, acknowledging its substantial debt obligations, which have forced it to close its doors. In a separate announcement posted on X, the company stated:

“LBRY Inc. is now in the process of winding down. While the LBRY network remains unaffected, Odysee and other assets will undergo a legal procedure to settle outstanding debts. However, Odysee’s future remains promising. We extend our heartfelt thanks to everyone who fought alongside us for online freedom. A final farewell post can be found in the first reply.”

On the 20th of October, in an official statement released on Odysee, the LBRY team elaborated on the insurmountable debt challenges they faced. This announcement also disclosed that all LBRY employees, board members, and executives have resigned, with the sole purpose of fulfilling their remaining legal obligations.

“The unfortunate truth is that LBRY Inc. must come to an end. It has lost a judgment against the federal government and accumulated several million dollars in debts, including obligations to the SEC, its legal team, and a private creditor, which it cannot meet. Its assets, including Odysee, are being placed into receivership. As of this announcement, all LBRY executives, employees, and board members have resigned. They are committed to addressing any remaining legal requirements, but no more.”

LBRY’s Initial Decision

LBRY had originally declared its intention to wind down its operations following a final judgment in favor of the Securities and Exchange Commission (SEC) on the 11th of July. The SEC had initially sought a penalty of $22 million, but subsequently reduced it to $111,000, recognizing that LBRY could not afford the original sum. At the time, LBRY had conveyed:

“The final verdict in SEC vs. LBRY is out. In accordance with the court’s directive and our commitments, we anticipate a winding down of LBRY Inc. over the next few months. As for the future of LBRY, that decision is now in your hands.”

In September, the LBRY community rejoiced when LBRY decided to reverse its decision to wind down and initiated an appeal against the regulatory authority. However, the latest announcement has confirmed that the company will not pursue its appeal against the Securities and Exchange Commission.

A Farewell from the Crypto Community

The LBRY team’s announcement prompted a heartfelt response from the crypto community, as they shared their final words of encouragement and support for the now-defunct project. One user expressed gratitude to LBRY for their unwavering fight, presumably against the Securities and Exchange Commission. Meanwhile, another user lauded LBRY’s network as one of the finest and most practical blockchains in the market, stating:

“Thanks for creating LBRY. It is one of the most valuable blockchain-based applications out there.”

What Lies Ahead for Odysee?

In the comments section of LBRY’s post, community members expressed their eagerness to support Odysee and keep it operational. Odysee, LBRY’s flagship application, continues to serve over 6,000,000 users monthly, even in the face of these challenges. It has also garnered recognition as the most popular Web3 social media platform globally. Given its immense popularity, Odysee remains one of LBRY’s most valuable assets.

The post did note that although it’s certain that another entity will take over Odysee’s assets, it’s unclear whether the Web3 platform will continue using the LBRY network or migrate to another network. Concluding, the statement added:

“Our online freedom faces an increasing threat, and its preservation is becoming more crucial than ever. We are proud to have played a part in the battle to maintain an open internet. Yet, we also feel remorseful about the way events have unfolded.”

Disclaimer: This article is provided solely for informational purposes and should not be construed as legal, tax, investment, financial, or other forms of advice.