Last updated on October 31st, 2023 at 04:33 pm
News that blockchain company LBRY has ceased operations amid an SEC lawsuit has cast a shadow over Ripple’s latest legal victory against the regulator.
On Thursday, the SEC dismissed claims against Ripple executives Brad Garlinghouse and Chris Larsen, marking a major win. But the same day, LBRY announced it is shutting down despite only owing the SEC around $100,000 after charges over unregistered securities sales.
LBRY Inc. is winding down.
The LBRY network is unaffected.
Odysee and other assets will undergo a legal process to satisfy debts, but Odysee has a bright future ahead.
Thank you to everyone who fought with us for online freedom.
A final goodbye post is in the first reply.
— LBRY 🚀 (@LBRYcom) October 19, 2023
The juxtaposition triggered debate over the uneven hand dealt by regulators to crypto firms based on size and resources.
Ripple, being a larger and well-funded entity, could take on the SEC’s 2020 lawsuit. In contrast, LBRY, despite having created an active platform for content creators, ultimately succumbed to legal pressures and decided to cease operations.
“Whilst we celebrate another massive win for Ripple, let’s not forget the damage the SEC has already done to crypto,” said XRP influencer Ashley Prosper.
#XRP #XRPCommunity
Whilst we celebrate another massive win for Ripple, let’s not forget the damage the SEC has already done to crypto. @LBRYcom has decided not to continue its appeal against the SEC and shut its doors for good today. However, with the rampant censorship on X and… https://t.co/66tOS8L7Z7 pic.twitter.com/6hr3GL6qpi— Ashley PROSPER (@AshleyPROSPER1) October 20, 2023
She expressed hope LBRY’s video app Odysee would persist, given censorship concerns on major platforms.
But others mourned LBRY as a promising crypto startup “regulated into oblivion” after millions in legal costs.
This situation highlights a disparity: larger companies like Ripple can endure regulatory challenges that might cripple smaller innovators. It’s worth noting that Ripple still faces ongoing battles regarding potential penalties for $700 million in XRP sales, even though charges against its executives have been dropped by the SEC.
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