SEC: “Telegram tokens have no intrinsic value”

In another court document filed by the SEC in the case against Telegram, the U.S. Securities and Exchange Commissionstated that despite company claims, Gram tokens have no intrinsic value.

The SEC v. Telegram case is ongoing. In one of the latest documents filed by the District Court for the Southern District of New York, the Commission stated:

“Telegram offered and sold Gram tokens assecurities, promising to put them in exchange for money in accordance with purchase agreements. This cannot be changed, even if the court allows Telegram to deliver Gram tokens to primary investors within the framework of wide public distribution, which would be a violation of Section 5, and the court should prohibit this. ”

SEC also said Telegram tried to get aroundprovision on compulsory registration and fulfill the “focus” by fabricating the difference between the buyers ’investments in Gram and the supply of tokens to them. According to the document, the company makes a weak argument about the "existence" of tokens, since "Grams will never be tangible property."

“Telegram’s attempt to avoid this economictruths and defining Gram as a “commodity” also failed. Gram is not a product. Unlike gold, comics and donuts - products that Telegram compares with Gram - the token has no intrinsic value, ”the SEC said in conclusion.

Let us remind you that in October 2019The SEC accused Telegram of unregistered token sales a year and a half after the ICO. Telegram agreed to postpone the launch of the project, which was previously scheduled for the end of October, until April 2020. Investors approved the postponement of the launch, refusing to issue refunds until disputes with the SEC are resolved.

In addition, recently the Commission published the nameslarge investors and the names of investment funds that could take part in the Telegram ICO. Previously, the SEC presented evidence of the sale of Telegram tokens after the completion of the ICO.

</p></p>