The U.S. Securities and Exchange Commission (SEC) is seeking to reduce a fine it previously sought to impose on LBRY, according to a May 12 indictment.
SEC will reduce fine, impose LBRY
The SEC, with the court’s approval, will withdraw its previous request for remission and instead impose a civil penalty of $111,644.
The regulator intends to impose the reduced fine because LBRY has become defunct and will soon cease operations, leaving it unable to pay the higher fine.
However, the SEC said it would issue injunctions to LBRY that would allow it to make unregistered securities offerings, at least until it destroys and dissolves its LBC crypto holdings. LBRY does not yet meet those conditions, the SEC said.
The SEC added that LBRY’s illegal actions were “recurrent” and “blatant” and that it could continue to violate the law. LBRY’s lack of funding and its demise as a legal entity could leave the project and its members with a “sense of impunity,” the SEC said.
LBRY previously asked for a reduced fine
The SEC initially filed its case against LBRY in March 2021 and won the case in November 2022. The regulator originally planned to impose a $22 million fine. LBRY asked for a reduced fine in December 2022, leading to the latest reduction.
LBRY wanted to provide a blockchain-based file and video sharing platform with social features and crypto payments. The LBRY app and website still exist.
The post-SEC filings to reduce LBRY’s multi-million dollar fine to $111,000 first appeared on CryptoSlate.