LBRY ends operations, cites feud with SEC and mounting debt

LBRY was targeted by the SEC over the issuance of its native token more than two years ago


ArtMediaWorx/Shutterstock modified by Blockworks


After a lengthy legal battle with the US Securities and Exchange Commission, LBRY has followed through with plans to close up shop.

In a farewell post, the company blamed its closure on a lost judgment to US regulators, adding it could no longer meet its financial obligations. 

The development follows LBRY’s previous notice of appeal in September against a court ruling favoring the SEC, a move that was seen as a last-ditch attempt to keep the company afloat.

As a blockchain-based content-sharing platform, LBRY aimed to disrupt traditional digital publishing platforms via its decentralized protocol.

However, the firm fell under the SEC’s scrutiny for alleged securities violations concerning its LBRY Credit tokens (LBC). The company argued against classifying its token as a security.

Despite these efforts, the company was dealt a crippling blow when the court sided with the SEC following the agency’s lawsuit against it in March 2021. 

Read more: LBRY files notice of appeal against court July decision that buckled the project

The regulator initially sought $22 million from the platform, though that was scaled back to just $111,000 after the SEC acknowledged its financial struggles.

LBRY’s existing debts include obligations to the SEC, its legal team and a private debtor. With no way to cover these, its assets, including its app Odysee, are being placed into receivership. 

All board members, executives, and employees have resigned. The company’s domain, social media handles and GitHub repository will also be utilized to satisfy the debts, according to the post.

The LBRY network itself remains active, given its decentralized structure. Over 1.7 million identities and 30 million pieces of content have been published to the LBRY blockchain.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png


Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.


Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121


Oklahoma’s new crypto bill will go into effect in November of this year


The deposits hit a $20 million cap in just 45 minutes


Twelve Democratic Senators voted in favor to pass the resolution Thursday

article-image is “aware” that bonding curve contracts on were exploited, and has since paused trading


Some investment pros are mulling crypto allocations between 1% and 10% and seeking ex-BTC exposure for interested clients