Blockchain-based content-sharing platform LBRY has dismissed its appeal against the Securities and Exchange Commission.
LBRY Inc., a blockchain-based content-sharing platform, has decided not to continue its legal tussle with the U.S. SEC.
Surprisingly, LBRY and the SEC signed a stipulation informing the First Circuit that they have both agreed to dismiss the company’s appeal challenging the regulator’s November 2022 victory.
“Upon consideration of stipulation, it is hereby ordered that this appeal be voluntarily dismissed pursuant to Fed. R. App. P. 42(b)(1), with each party to bear its own cost,” the court noted in an October 23 ruling.
Notably, prominent legal expert James K. Filan shared the development in an X post this week.
#XRPCommunity #SECGov v. #Ripple #XRP In the @LBRYcom case, the @LBRYcom appeal has been voluntarily dismissed. pic.twitter.com/PQVpfAfQZD
— James K. Filan ???? (@FilanLaw) October 24, 2023
LBRY Winds Down
The voluntary dismissal of LBRY’s appeal against SEC’s victory comes days after the company announced it was “winding down.”
“LBRY Inc. has debts to the SEC, its legal team, and a private debtor that it cannot pay. Its assets, including Odysee, are being placed into receivership,” the company said in a statement.
In an October 19 X post, the company stated that even though it is winding down its operations, the LBRY network will not be affected.
LBRY Inc. is winding down.
The LBRY network is unaffected.
Odysee and other assets will undergo a legal process to satisfy debts, but Odysee has a bright future ahead.
Thank you to everyone who fought with us for online freedom.
A final goodbye post is in the first reply.
— LBRY ? (@LBRYcom) October 19, 2023
Last year, LBRY disclosed that it had been “killed by legal and SEC debts.” The company made the heartbreaking announcement after suffering a devastating defeat against the Securities and Exchange Commission.
On November 7, 2022, the federal district court in New Hampshire ruled that LBRY violated securities laws by selling LBRY Credit (LBC) without registering with the SEC.
Eight months later, the trial court issued the final judgment, ordering LBRY to pay a $111,614 civil penalty to the SEC for the violation.
LBRY Appeal
Not satisfied with the decision, LBRY filed an appeal on September 7, 2023, challenging the ruling at the U.S. Court of Appeals for the First Circuit.
LBRY’s decision to appeal took many by surprise, given that the company had previously disclosed it would not take that route.
With the company currently plunged into a financial crisis as a result of the SEC lawsuit, LBRY has opted to dismiss the appeal voluntarily.