• Wed. May 22nd, 2024

Crypto Pioneer LBRY Bows Out Amid Regulatory Pressures

Maria Bartiromo

ByMaria Bartiromo

Oct 20, 2023

In a somber declaration posted on Odysee, the LBRY team bid farewell to the cryptocurrency community, acknowledging the insurmountable financial challenges that forced their hand. The blockchain company, known for creating the LBRY blockchain, cited mounting debts, amounting to several million dollars, as the decisive factor that led to their ultimate decision. The debts, owed to the SEC, their legal representatives, and a private creditor, created an impenetrable barrier, leaving LBRY with no choice but to cease operations.

The decision to shut down was a heartbreaking one for LBRY, which had initially signaled its intention to wind down in July following a judgment in favor of the SEC, albeit at a reduced penalty of $111,000 from the initial $22 million sought. There was a glimmer of hope in September when LBRY filed a notice of appeal against the regulator, prompting a brief resurgence of optimism within the community. However, this optimism was short-lived, as the recent statement confirmed the abandonment of their appeal against the SEC.

As a symbolic gesture of closure, LBRY’s executives, employees, and board members have resigned, dedicating their efforts solely to fulfilling outstanding legal obligations. Reflecting on their eight-year journey in the cryptocurrency industry, former CEO Jeremy Kauffman expressed gratitude for the experience, despite its unfortunate ending.

Community Support Boosts LBRY Amid Closure

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The announcement elicited an outpouring of support from the cryptocurrency community. Users on various platforms, including X, expressed their appreciation for LBRY’s valiant struggle against regulatory challenges. Among the parting remarks, one user, Steve, praised LBRY for their tenacity, especially in the face of SEC opposition, and another, archerships, praised LBRY’s network as one of the most valuable blockchain-based platforms accessible.

In this challenging time, the LBRY team found solace in the enduring strength of their creation. Despite LBRY Inc.’s closure, the LBRY blockchain, which is open-sourced and decentralized, will persist as long as blocks continue to be mined. Odysee, the LBRY-powered video-sharing platform, remains operational, serving millions of unique users monthly, making it a testament to the enduring legacy of LBRY’s innovative approach to online content sharing.

In a related development, cryptocurrency exchange Binance faced its own set of challenges in the European market. Binance had to quickly find new partners to handle euro deposits and withdrawals after losing support from its former fiat partner, PaySafe, in September. On October 19, the exchange reported that it has successfully onboarded additional regulated and approved fiat partners, ensuring the continuation of euro services. The partners enabled users to conduct transactions via Open Banking, SEPA, and SEPA Instant, providing a lifeline for European users navigating the shifting regulatory landscape.

However, challenges persisted in the United Kingdom, where Binance struggled to establish fiat partnerships following regulatory hurdles imposed by the Financial Conduct Authority (FCA). Despite these obstacles, Binance remained resilient, adapting to the ever-changing regulatory environment to continue serving its user base, albeit with ongoing efforts to address the remaining issues.

As the cryptocurrency landscape continues to evolve, the industry’s resilience is tested, showcasing the tenacity and determination of both companies and communities to navigate regulatory complexities and sustain the principles of decentralized finance.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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