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In a surprise request filed recently, the SEC asked that a New Hampshire court reduce the fine imposed on LBRY, a decentralized content platform best known for its video-sharing platform Odyssey.
Legitimate business expenses taken into account
Back in November of 2022, the New Hampshire District Court ordered LBRY to pay $22 million to the SEC, ruling that the latter token was an unregistered security due to it passing the LBC Howey test.
“The SEC bases its claim on direct application of respected Supreme Court precedent that has been applied (…) across the country for more than 70 years.
The SEC identifies several statements by LBRY that it claims that potential investors reasonably expect that LBC will increase in value (..). LBRY downplays the significance of these statements and points to its many disclaimers that LBC was not intended to be purchased as an investment, but the SEC is correct.
At that point, LBRY Oppose The ruling, which states that $22 million is a greatly exaggerated figure and fails to take into account the legitimate business expenses incurred by the development and hosting of its software.
It’s unclear whether the SEC took this into account, however, as the agency’s decision to request a reduced sentence is reportedly based on LBRY’s inability to pay, rather than a change of heart.
small fine will suffice
motivating your decision to pursue a reduced penalty, the SEC said that its surprise decision was taken due to LBRY’s inability to pay the principal amount. At this time, LBRY is nearly bankrupt and has stated that it will likely cease all operations in the future.
If the Court grants the SEC’s request, LBRY will be left with a $111,614 fine to pay. They will also be barred from holding “unregistered offerings of crypto asset securities” in future.
Whether LBRY will be able to bounce back and stay afloat now that the money it has with the US government has been dramatically reduced is hard to tell.
In any case, the inability to raise funds through crypto has severely hampered the firm’s ability to collect revenue that doesn’t interfere with its users’ experience, meaning Odyssey needs a new platform for YouTube. The perks that make it an interesting choice may soon be gone. – if it stays online in the first place.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
In a surprise request filed recently, the SEC asked that a New Hampshire court reduce the fine imposed on LBRY, a decentralized content platform best known for its video-sharing platform Odyssey.
Legitimate business expenses taken into account
Back in November of 2022, the New Hampshire District Court ordered LBRY to pay $22 million to the SEC, ruling that the latter token was an unregistered security due to it passing the LBC Howey test.
“The SEC bases its claim on direct application of respected Supreme Court precedent that has been applied (…) across the country for more than 70 years.
The SEC identifies several statements by LBRY that it claims that potential investors reasonably expect that LBC will increase in value (..). LBRY downplays the significance of these statements and points to its many disclaimers that LBC was not intended to be purchased as an investment, but the SEC is correct.
At that point, LBRY Oppose The ruling, which states that $22 million is a greatly exaggerated figure and fails to take into account the legitimate business expenses incurred by the development and hosting of its software.
It’s unclear whether the SEC took this into account, however, as the agency’s decision to request a reduced sentence is reportedly based on LBRY’s inability to pay, rather than a change of heart.
small fine will suffice
motivating your decision to pursue a reduced penalty, the SEC said that its surprise decision was taken due to LBRY’s inability to pay the principal amount. At this time, LBRY is nearly bankrupt and has stated that it will likely cease all operations in the future.
If the Court grants the SEC’s request, LBRY will be left with a $111,614 fine to pay. They will also be barred from holding “unregistered offerings of crypto asset securities” in future.
Whether LBRY will be able to bounce back and stay afloat now that the money it has with the US government has been dramatically reduced is hard to tell.
In any case, the inability to raise funds through crypto has severely hampered the firm’s ability to collect revenue that doesn’t interfere with its users’ experience, meaning Odyssey needs a new platform for YouTube. The perks that make it an interesting choice may soon be gone. – if it stays online in the first place.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
