The SEC originally wanted LBRY to pay millions of dollars in penalties, but now concedes the defunct firm can’t pay up that amount.
The US regulator is seeking to revise its $22 million fine against LBRY for content removal, acknowledging that it is unlikely to be able to raise the funds to pay it.
In a May 12 filing in New Hampshire district court, the Securities and Exchange Commission asked for relief in its ongoing lawsuit against LBRY. Instead of asking for the first $22 million – money it says LBRY made from the sale of LBRY token credits (LBRY), the SEC asked the court to pay $111,614. “. “
The petition also asks to prevent LBRY from “making future contributions to the security of crypto assets.”
“The company acknowledges LBRY’s representation that it is a bad business, that the business does not have the money to pay a large debt, and understands that the ability of the debtor to pay is the reason when it imposes civil penalties,” the SEC said in a filing.
The SEC filed the first civil complaint against LBRY in March 2021, alleging that the sale of LBC was an unregistered securities offering. He asked for $22 million in restitution and the court ordered LBRY to stop any further sales of LBC.
The SEC won the case in November 2022, with the previous judge also declaring LBC a security. The SEC said that the small penalty is a compromise between “the need to address the suspension of penalties and the inability to pay LBRY.”
In a filing in December, LBRY said the SEC’s $22 million request was unreasonable because it “grossly” overstated it and did not “exclude any of LBRY’s legitimate business obligations.”
LBRY said the SEC’s calculation of the sum was “based on a rough back-of-the-envelope calculation” and that the amount sought was “only unsupported by the records.”
In December 2022, about a month after the SEC filed the case, LBRY said that he “will probably die soon” because of “the legal fees that the SEC killed.”
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