• LBRY Credits (LBC) token had a 24% plunge in value after the US District Court ruled against LBRY Inc. for violating securities laws
• The company is now permanently prohibited from selling unregistered securities and has to pay a fine of $111,614
• LBRY Inc. is now winding down their business completely
LBRY Token Plummets After Ruling Against LBRY Inc.
At press time, the decentralized content-sharing project LBRY Token had plunged to $0.009298 from a high of $0.01235 on July 11th. This price drop followed a ruling that the company behind it, LBRY Inc., violated US securities laws.
SEC Lawsuit Against LBRY
In March 2021, the SEC sued LBRY for offering unregistered securities in violation of US law. According to the court’s order, the company is now permanently prohibited from selling unregistered securities unless it first registers with the US Securities and Exchange Commission (SEC). It also has thirty days to pay a fine of $111,614 due to these violations.
LBRY Shutting Down Business
Following this final judgment, LBRY Inc was quick to announce its next steps stating that it working on winding down completely; they plan to spend “the next several months” doing so as stated in an official tweet released by them following this news: “As to what happens to LBRY from here, well, that’s up to you”.
SEC Did Not Request Total Shutdown
It’s important to note that the SEC never requested a total shutdown of the project in their initial complaint despite this announcement; instead they sought prevent any further offerings of unregistered securities as well as return any profits made through such activities and enforcing civil penalties upon those who did not adhere to these regulations.
The ruling made by Judge Paul J. Barbadoro forces LBYR Inc into winding down all operations permanently without any plans for revival in sight at present; however investors can still hold onto their currently held tokens although further developments are yet uncertain regarding their future value or stability due its current state of limbo between being shut down or continuing operations under another entity if one were ever found willing or capable enough take over its protocols and token economy systems