LBRY, a blockchain company known for creating the LBRY blockchain, has announced its closure due to debts in the millions of dollars. In a final message to the crypto community, the company has cited insurmountable debts that make it impossible to continue operations.
In an October 20 statement posted on Odysee and X (formerly Twitter), the LBRY team has announced its closure, stating: “This will be our last post.”
LBRY has stated that it has millions of dollars in debt to the SEC, its legal team, and a private creditor, which have proven to be insurmountable.
“LBRY Inc. must die, there is no escaping this. It has lost a judgment to the federal government, has several million dollars in debts, and has committed to shutting down.”
“Thank you to everyone who fought with us for online freedom,” LBRY added in an Oct. 19 X post.
LBRY first announced its intention to shut down in July after the SEC won a final judgment in their favor on July 11. The SEC had initially sought a $22 million penalty but later reduced that to $111,000 after realizing the company couldn’t afford to pay.
The community was delighted when LBRY announced its appeal against the SEC judgement in September.
Despite previously deciding to appeal the SEC judgment, LBRY has now announced that it will no longer pursue the appeal.
LBRY’s executives, employees, and board members have resigned, and the company is now only fulfilling its legal obligations.
In an Oct. 19 post on X, former CEO Jeremy Kauffman looked back on LBRY’s eight years in the crypto industry, saying, “It wasn’t a happy ending, but it was a happy journey.”
With the announcement of LBRY’s closure, the crypto community has shared their appreciation for the company and its team.
One X user, Steve, has thanked LBRY for putting up a “good fight,” perhaps against the SEC. Another archership has praised LBRY as one of the most useful blockchain-based platforms available.
In response to LBRY’s post, community members on Odysee have expressed their desire to keep the platform alive and thriving. They have pledged their support for Odysee and its continued growth.
LBRY’s team has noted that its blockchain is open-source and decentralized, so it will continue to operate as long as miners keep mining blocks.
According to CoinGecko, Odysee had 5.3 million unique users per month from January to April 2023, making it the most popular decentralized social media platform.
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