Business News Report
May 15, 2023

SEC Lowers Initial Punishment of $22 Million Against LBRY to $111,000

In Brief

The SEC originally wanted LBRY to pay millions of dollars in penalties, but the company is unable to pay that much now.

LBRY‘s failure to pay millions in SEC penalties has prompted the regulator to revise the fine due to the lack of funds, the SEC said on Friday.

SEC has revised its initial punishment of $22 million against LBRY

In a May 12 filing in a New Hampshire District Court, the Securities and Exchange Commission (SEC) sought an amendment to its request for remedies in its successful case against LBRY.

The SEC requested that the court fine LBRY $111,614 for “lack of funds and near defunction.” Instead of seeking the original $22 million — the amount LBRY claims it gained from the sale of LBRY Credits (LBC), the SEC has asked the court to impose a fine of $111,614, citing LBRY’s “lack of funds and near defunct status.”

The Commission agrees with LBRY’s assertions that it is defunct, it has ceased operations and is unable to pay a larger fine, it said in the filing.

In March 2021, the SEC filed a civil lawsuit against LBRY, alleging the firm’s LBC sales were unregistered securities offerings. The court must order LBRY to halt future sales of LBC shares, the court ruled.

In a December filing, LBRY claimed that the SEC’s request for $22 million wasn’t reasonable as it was “vastly” overstated and failed to “deduct any of LBRY’s legitimate business expenses.” According to LBRY, the SEC’s calculation of the amount was “based on rough, back of the envelope math” and the amount it sought was “simply not supported by the record.”

The LBRY lawsuit was a month prior to the announcement that the SEC had won the case, and the company was “likely dead in the near future” as a result, according to LBRY in December 2022.

  • The U.S. Securities and Exchange Commission (SEC) has charged Justin Sun, founder of Tron and BitTorrent, with fraud and market manipulation for selling unregistered securities. Tron’s founder was charged with fraudulently manipulating the secondary market for TRX through extensive wash trading.

Read more related articles:

Tags:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Read More
Read more
Coinbase Acquires Utopia Labs’ Team To Accelerate On-Chain Payments
Business News Report Technology
Coinbase Acquires Utopia Labs’ Team To Accelerate On-Chain Payments
November 13, 2024
BlackRock Launches New BUIDL Share Classes Across Multiple Blockchains To Broaden Access And Enhance BUIDL Ecosystem Potential
Business News Report Technology
BlackRock Launches New BUIDL Share Classes Across Multiple Blockchains To Broaden Access And Enhance BUIDL Ecosystem Potential
November 13, 2024
Zero Gravity Integrates With CARV To Provide Infrastructure For High-Performance Projects
News Report Technology
Zero Gravity Integrates With CARV To Provide Infrastructure For High-Performance Projects
November 13, 2024
QCP Capital: Bitcoin Enters ‘New Phase,’ Reinforcing Its Position As Treasury Asset Held By Corporations, Governments, And Institutions
News Report Technology
QCP Capital: Bitcoin Enters ‘New Phase,’ Reinforcing Its Position As Treasury Asset Held By Corporations, Governments, And Institutions
November 13, 2024