SEC Slashes $22M Fine on Crypto Firm LBRY to $111K

• The SEC has requested to reduce a previous penalty of $22 million on the crypto startup LBRY to $111,614.
• This case is being seen as having an impact on the wider crypto industry due to LBRY’s defense that its native token, LBC, was not a security.
• The SEC has argued that LBRY should be “enjoined” until it carries out plans to dissolve the company and burn tokens.

SEC Seeks To Reduce Penalty On Crypto Firm LBRY

The U.S. Securities and Exchange Commission (SEC) wants to revise a $22 million penalty set on crypto startup LBRY to $111,614, according to court documents from Friday. The regulator cited LBRY’s “lack of funds and near-defunct status,” as reasons for withdrawing its previous request for fine.

LBC Token Violated Securites Laws

In March last year, the SEC sued LBRY on allegations that the sale of its native LBRY credits (LBC) violated federal securities laws. In November, a New Hampshire judge ruled the startup had violated securities laws by failing to register with the SEC.

Impact On Wider Crypto Industry

Jeremy Kauffman, LBRY’s founder has previously said this case could impact the wider crypto industry as the company maintained that LBC was not a security. Ripple Labs has a similar defense as it faces SEC charges for the sale of $1.3 billion in XRP tokens.

Request To Enjoin The Company

The SEC’s request to remedy the penalty also argued LBRY should be “enjoined,” at least until it carries out its plans to dissolve the company and burn LBC tokens. The company had previously argued the SEC’s $22 million penalty was unwarranted, comparing the sum to the regulator’s $5 million settlement in its case against Kik over a $100 million unregistered token sale.


This latest move made by the SEC serves as another reminder of their focus on enforcing regulations within cryptocurrency markets while continuing their efforts towards protecting investors from potential scams or fraudulent activities related to digital asset trading activities in general

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