The SEC revised the $22 million fine against decentralized content platform LBRY to $111,000.
The United States Securities and Exchange Commission (SEC) admitted that the bankrupt company would not be able to pay the $22 million fine. In a May 12 filing in the New Hampshire District Court, the SEC sought an amendment to the settlement request of its lawsuit against LBRY.
SEC: LBC Sale Must Be Stopped
Instead of demanding the $22 million that LBRY claimed to have earned from the sale of the LBRY Credits (LBC) token, the SEC requested that the fine be reduced to $111,614, citing LBRY’s lack of funds and bankruptcy.
Aside from that, the regulator also wants LBRY to stop unregistered selling of crypto-asset securities in the future. In its report to the court, the SEC said: “The Commission accepts the statements that LBRY has been dissolved, ceased operations and has no funds to pay a larger fine, and acknowledges that this is a factor affecting its solvency.”
The US regulator first filed a civil lawsuit against LBRY in March 2021, claiming the firm’s LBC sales were unregistered securities. The lawsuit ordered LBRY to pay $22 million in damages and to cease sales of LBC.
The SEC won the case in November 2022, while the previous judge ruled that LBC was a security. In a December filing, LBRY claimed that the SEC’s $22 million claim was grossly exaggerated and the fee was unreasonable.
LBRY said the SEC’s calculation of the amount was crude and not supported by the records.
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