- The regulator made this decision in light of the organization’s insolvency
- LBRY had previously lost a lawsuit with the SEC and the LBC token was recognized as a security
- The organization said that the decision in the case puts the platform on the verge of liquidation
- This is one of the SEC’s biggest victories, when the regulator was still able to classify the crypto-asset as a derivative
On Friday, May 12, the Securities and Exchange Commission (SEC) filed an amendment to its claims against LBRY with the New Hampshire District Court.
The regulator decided to revise the amount of the fine from $22 million to $111,000.
Remind that last November, the LBRY lost a lawsuit with the SEC. The platform’s native token was found to be a security, after which the regulator ordered the organization to pay a hefty fine.
This amount, $22 million, is allegedly the platform’s income from the sale of the LBC asset to customers. In response, the organization said that such a requirement is simply not feasible.
The ruling states that LBRY notified the Commission of the actual termination. In view of this, as well as the lack of funds in the organization’s accounts, the SEC decided to “moderate the appetite.”
This is by no means a “goodwill gesture.” If the regulator had continued to insist on paying the full amount, with a high degree of risk it would have gained nothing. LBRY has not yet commented on the situation.
An earlier organization noted that the loss in court with the SEC actually puts the platform on the verge of liquidation.. It is unknown whether the site will return to work now that the fine has been reduced.