June 16, 2024

SEC wins trial against Telegram

SEC wins trial against Telegram

A US district court has ruled that Telegram is prohibited from issuing its tokens.

March 24, having satisfiedrequest of the Securities and Exchange Commission, the court stated:

The court finds that the SEC was able to prove the factthat the sale of 2.9 billion Gram tokens for $ 1.7 billion to 175 buyers was part of a larger scheme to market Gram to the public Given the economic realities of the Howie test, the court decided that the resale of Gram tokens in the secondary public market would become an integral part of the sale of securities without registration.

This decision means that on April 30th the teamDurova will not be able to launch tokens. Despite the fact that Telegram still has the opportunity to appeal the court order, the future future of Gram is extremely uncertain.

The court documents also indicate:

The court concluded that the delivery of Graminitial buyers who resell them to the public market cannot be carried out, as this will be the completion of the distribution of securities without proper registration. An order prohibiting the movement of Gram will be released shortly.

SEC lawsuit against Telegram began inOctober last year. Recall that the ICO Telegram Open Network was held in 2018. As in the cases with many other ICOs, the commission decided that according to the 1934 Howie test, such offers represent an unregistered sale of securities.

Based on materialscointelegraph.com