The US Securities and Exchange Commission (SEC), which considers most cryptocurrencies, especially Ripple (XRP), to be securities, continues its pressure on the crypto money sector.
The SEC, which has sued many cryptocurrency platforms, also filed a lawsuit against cryptocurrency startup LBRY.
The SEC sued LBRY alleging that the sale of the LBRY (LBC) token in March 2022 violated federal securities laws.
In November, the court ruled that the LBRY venture did not register with the SEC and that the LBC token violated securities laws.
The court also fined LBRY $22 million.
According to Coindesk's report, the SEC has now sought to reduce the $22 million fine imposed on LBRY from the court to $111,614.
He cited LBRY's substantial shortage of funds and the near-defunct status of its current status as the reason for the SEC's request for a reduction in the penalty.
In addition to reducing the sentence, the SEC also asked the court to stop LBRY from selling unregistered cryptocurrencies in the future.
The SEC made the following statements in its request document submitted to the court:
"The Commission acknowledges that LBRY has been terminated, ceased operations and lacks the funds to pay a larger fine, and recognizes that a platform's solvency is an important factor when imposing a civil penalty."
LBRY had previously said that the SEC's $22 million fine was exaggerated and unwarranted.
*Not investment advice.
