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SEC Commissioner Hester Peirce slams SEC enforcement action against LBRY

Hester Peirce, a commissioner of the US Securities and Exchange Commission (SEC), issued a statement stating that the SEC has taken many disturbing cryptocurrency enforcement actions, but the LBRY, Inc. case is particularly disturbing and disappointing. Peirce stated that although the agency claims that the application of securities law to token projects is clear, this is not the case. She said that companies like LBRY have no way to enter and register their functional token products. Even if a company does successfully register its token issuance, this does not completely prevent SEC enforcement actions. Peirce added that compliance is important for investors. On October 19, LBRY announced that it will shut down after the SEC charged the startup with selling unregistered securities.

Blockchain Company LBRY Inc. Issues Final Message Citing Millions in Debt, Will Wind Down

LBRY Inc., the company behind the LBRY blockchain, has announced that it will be winding down due to several million dollars of debt owed to the SEC, its legal team, and a private debtor. The LBRY network itself is unaffected, but assets such as Odysee will undergo a legal process to satisfy debts. LBRY had previously announced its intention to wind down in July after a judgment in favor of the SEC, but had filed a notice of appeal against the regulator in September. However, in its latest statement, the firm revealed that it will no longer continue its appeal against the SEC.

LBRY Inc. Announces Impending Closure

The cryptocurrency startup LBRY announced on social media that LBRY Inc. is about to close, but the LBRY network will not be affected. LBRY stated that the company's debt to the US Securities and Exchange Commission, its legal team, and some private creditors has become impossible to repay.