The US Securities and Exchange Commission (SEC) is seeking modifications to the penalties imposed on LBRY, a decentralized content platform, due to the platform's inability to pay a substantial fine of $22 million. In a document filed on May 12 in a New Hampshire District Court, the SEC requested an updated remedy for the case it successfully pursued against LBRY.

The SEC is now proposing a reduced fine of $111,614 instead of the original amount, considering LBRY's current financial situation characterized by a lack of funds and near-defunct status. The commission also wants to prohibit LBRY from engaging in future unregistered offerings of crypto asset securities.

In its filing, the SEC acknowledges LBRY's claim of being defunct, ceasing operations, and lacking the necessary funds to pay a larger penalty. The SEC recognizes the defendant's ability to pay as a relevant factor when determining the appropriate civil penalty to impose