The blockchain company LBRY Inc. has announced its decision to shut down due to mounting debts and conflicts with the Securities and Exchange Commission (SEC). This news has had a significant impact on the cryptocurrency industry, as LBRY has been a leading player in the sector. However, LBRY’s open-source blockchain platform, Odysee, will continue to operate despite the company’s closure.LBRY Inc. explained in its final statement that it had accumulated several million dollars in debt, making it impossible to sustain its operations. This financial burden was partly due to obligations to the SEC, legal expenses, and other private creditors, reaching an insurmountable level.LBRY has been dealing with regulatory issues with the SEC for some time. Initially, the company faced a legal dispute that resulted in a $22 million penalty. However, considering LBRY’s financial constraints, the penalty was reduced to a more manageable $111,000. In their latest announcement, LBRY revealed that they have chosen not to continue their appeal against the SEC, indicating their acceptance of the regulatory outcome and a shift in focus towards fulfilling their legal obligations.Despite the challenging circumstances, the cryptocurrency community has shown unwavering support for Odysee and its vision. Many members of the crypto community are expressing their commitment to ensuring the continuity of Odysee’s open-source blockchain. Prominent advocates, such as John Deaton and David Schwarz, have highlighted the SEC’s relentless approach towards LBRY, a company that has no fraudulent activities. Deaton has suggested that the LBRY case should be included in academic legal discussions to shed light on the dynamics of modern blockchain technology and the potential overreach of regulatory bodies.The overall sentiment within the crypto community following LBRY’s closure is a mix of sadness and a call for a clear regulatory framework. Many see LBRY’s experience as a reflection of the challenges faced by blockchain initiatives in the complex legal landscape.

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Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	1
People	John Deaton, David Schwarz
Companies	Ripple, LBRY Inc., Odysee, Securities and Exchange Commission (SEC), XRP
Currencies	XRP
Securities	None