The SEC has recently adjusted its initial penalty of $22 million for LBRY, bringing it down to a considerably smaller amount.

LBRY The inability of LBRY to settle hefty penalties has led the SEC to reevaluate and subsequently lower the fines, as noted by the agency last Friday.

In a court filing dated May 12 in New Hampshire, the Securities and Exchange Commission sought to amend its request for enforcement actions in the successful case against LBRY. SEC The SEC has revised its request to the court, now seeking a fine of $111,614 from LBRY, attributing this to ‘insufficient funds and nearly defunct status’ instead of the original $22 million, which the SEC associated with LBRY’s revenue from LBRY Credits (LBC).

The Commission acknowledged LBRY’s position, agreeing that the company has ceased operations and lacks the financial capability to pay a larger penalty, as stated in the court documents.

The SEC took legal action in March 2021 against LBRY, claiming that the firm’s sales involved unregistered securities. The court has mandated LBRY to stop future sales of LBC shares.

In a filing last December, LBRY contended that the SEC’s demand for $22 million was unreasonable, arguing it was excessively inflated and did not account for their legitimate business expenses. LBRY criticized the SEC’s calculations as being based on flawed and rough estimations. LBC The legal case involving LBRY emerged just a month before the SEC announced its victory in court, with LBRY stating that the verdict could lead to its imminent shutdown.

The U.S. Securities and Exchange Commission has filed charges against Justin Sun, the founder of Tron and BitTorrent, accusing him of fraud and market manipulation involving the sale of unregistered securities.

Sun is accused of manipulating the TRX secondary market through significant wash trading activities.

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