SEC revises $22M punishment against LBRY, seeks $111K instead
The decentralized content platform LBRY is unlikely to be able to come up with the money to be able to pay the $22 million fine, so the US securities regulator is attempting to modify it.
The Securities and Exchange Commission (SEC) requested an update to its request for remedies in its successful case against LBRY in a document filed in a New Hampshire District Court on May 12.
The SEC has asked the court to impose a fine of $111,614 rather than the original $22 million, which it claims LBRY made via the sale of its token LBRY Credits (LBC), noting LBRY’s “lack of funds and near-defunct status.”
The request also asks to stop LBRY from “conducting future unregistered offerings of crypto asset securities.”
“The Commission acknowledges LBRY’s representations that it is defunct, ceasing operations, and without the funds to pay a larger fine, and recognizes that a defendant’s ability to pay is a factor when imposing a civil penalty,” the SEC said in the filing.
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The US Securities and Exchange Commission (SEC) is seeking modifications to the penalties imposed on LBRY, a decentralized content platform, due to the platform's inability to pay a substantial fine of $22 million. In a document filed on May 12 in a New Hampshire District Court, the SEC requested an updated remedy for the case it successfully pursued against LBRY.
The SEC is now proposing a reduced fine of $111,614 instead of the original amount, considering LBRY's current financial situation characterized by a lack of funds and near-defunct status. The commission also wants to prohibit LBRY from engaging in future unregistered offerings of crypto asset securities.
In its filing, the SEC acknowledges LBRY's claim of being defunct, ceasing operations, and lacking the necessary funds to pay a larger penalty. The SEC recognizes the defendant's ability to pay as a relevant factor when determining the appropriate civil penalty to impose