SEC reduces Lbry's punishment of $ 22 million to $ 111,000
SEC reduces Lbry's punishment of $ 22 million to $ 111,000
In a recently submitted, surprising application, the SEC asked the New Hampshire court to reduce the penalties imposed on Lbry, a decentralized content platform that is primarily known for its video sharing platform Odysee.
Consideration of legitimate business expenditure
As early as November 2022, the district court of New Hampshire Lbry sentenced to the SEC to pay $ 22 million and decided that their token LBC was not registered due to the existence of the Howey test.
"The SEC has supported its right to the simple application of a venerable precedent of the Supreme Court [...] across the country for more than 70 years.
The SEC identifies several statements by LBRY, of which she claims that they prompted potential investors to assume that LBC would gain value [..]. Lbry minimizes the importance of these statements and indicates its numerous disclaimers that it was not intended to buy LBC as an investment, but the SEC is right. ”
At that time, Lbry refused to make the verdict and explained that $ 22 million were a significantly excessive number and legitimate business expenses that had arisen from the development and hosting of its software. However, it is unclear whether the SEC has taken this into account, since the authority's decision to demand a lower punishment is supposedly based on the insolvency of Lbry and not based on a change of meaning.lower fines are sufficient
The SEC justified its decision to impose a lower punishment, so that its surprising decision was made due to Lbry's inability to pay the original amount. Lbry is currently almost bankrupt and has explained that it will probably stop the entire company in the future.
If the court fulfills the SEC application, Lbry must pay a fine of $ 111,614. You will also be prohibited from keeping future “non-registered offers of crypto-asset securities”.
whether Lbry will be able to get back on your feet and keep afloat after the funds that owe it to the US government have been drastically shortened.
In both cases, the inability to obtain means of crypto, to achieve the company's ability to achieve income in a way that does not affect the experience of its users, significantly impairs, which means that the advantages that Odysee turns an interesting alternative to YouTube may soon be lost - if it stays online at all.
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