Judge orders Manchester tech firm to pay $111k fine over cryptocurrency sales

A federal judge has ordered a Manchester-based technology company to pay $111,614 in penalties for violating securities regulations.

In 2021, the Securities and Exchange Commission sued LBRY (pronounced 'library') for failing to register its own cryptocurrency as a security and promoting its potential value to investors.

LBRY maintained that the government has not established clear rules on cryptocurrencies and that it began offering its digital currency "during a time of great uncertainty regarding regulatory requirements," according to court documents.

Last November, Judge Paul Barbadoro granted a motion for summary judgment on behalf of the SEC, ruling that LBRY had no "justiciable defense" in the case. This week, Barbadoro sided with the SEC to determine LBRY's civil penalties, in lieu of the company's request for a $50,000 fine.

LBRY is the parent company of Odysee, a YouTube-like platform with little content moderation that uses blockchain technology. Jeremy Kauffman, who founded the company, was the Libertarian candidate for New Hampshire's 2022 US Senate race and finished in third place.

Content creators on Odysee could earn company-issued digital tokens. Users could then spend them on the website or other apps, while investors could buy and sell the token on third-party exchanges. Per the judge's order, LBRY has said it plans to "burn" its cryptocurrency holdings.