{"id":78724,"date":"2023-05-15T11:29:57","date_gmt":"2023-05-15T08:29:57","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=78724"},"modified":"2025-09-11T06:59:56","modified_gmt":"2025-09-11T03:59:56","slug":"sec-lowers-lbrys-civil-penalty-from-22-million-to-111614","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-lowers-lbrys-civil-penalty-from-22-million-to-111614\/","title":{"rendered":"SEC lowers LBRY’s civil penalty from $22 million to $111,614"},"content":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) requested<\/a> the court to reduce LBRY’s civil penalty from $22 million to $111,614 in the case it had previously won.<\/p>\n

accused<\/a> a decentralized content-publishing platform of selling unregistered securities in the form of the LBRY Credits (LBC) token.<\/p>\n

In November 2022, New Hampshire district judge Paul Barbadoro granted<\/a> the SEC’s suit against the blockchain startup.<\/p>\n

In a May 12 filing, the Commission clarified the final demands for legal sanctions. The regulator acknowledged that the project would not be able to pay the initially requested $22 million as a fine due to \u201ca lack of funds\u201d and \u201ca status close to winding down.\u201d<\/p>\n

The agency reiterated its request for a court injunction preventing the startup from conducting \u201cfuture unregistered securities offerings.\u201d<\/p>\n

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\u201cThe Commission takes into account LBRY’s statements about ceasing operations and the lack of funds to pay a larger fine, and also acknowledges that the defendant’s solvency is a factor in imposing sanctions,\u201d said the SEC lawyers.<\/p>\n<\/blockquote>\n

They noted that the startup, despite promises, took no steps to halt further LBC sales.<\/p>\n

As of writing, the token was trading near $0.01. It is more than 99% below its July 2016 high of $1.60.<\/p>\n

\"image-284\"
Data: CoinGecko<\/a>.<\/figcaption><\/figure>\n

Attorney James Filan drew Ripple’s community’s attention to the outcome of the SEC case against LBRY. In December 2020, accused<\/a> the California fintech startup of selling unregistered securities in the form of XRP tokens. Lawyer Bill Morgan commented on a colleague’s tweet:<\/p>\n

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\u201cMillions of dollars have been spent to obtain a fine of $111,614 and to financially ruin the company. That helps the world.\u201d<\/p>\n<\/blockquote>\n

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Millions of dollars spent for a fine of $111,614.00 and a company financially ruined. That helps the world. https:\/\/t.co\/GhvCS0Az7s<\/a><\/p>\n

\u2014 bill morgan (@Belisarius2020) May 12, 2023<\/a><\/p><\/blockquote>\n