Telegram refused to provide SEC financial information on its ICO

Telegram refused to provide the US Securities and Exchange Commission (SEC) with information about bankingICO cost-related operations conducted in 2018.

As Finance Magnates reports, the Securities CommissionThe US Securities and Exchange Commission (SEC) said that Telegram refused to disclose financial details related to the sale of tokens worth $1.7 billion. In this regard, the American regulator recently asked the court to issue a court order that would force the company to disclose information about banking transactions related to the expenditure of collected funds over the past two years.

“Plaintiff is attempting to persuade Defendants to respond toquestions and provide documents regarding the amounts, sources and use of funds raised from investors in connection with the unregistered sale of outstanding securities,” — the SEC noted in a statement. “Defendants refuse to disclose bank transactions related to the spending of $1.7 billion raised from investors over the past two years and to answer questions about the distribution of investor funds.”

At the beginning of 2018, Telegram raised $1.7 billion for two rounds of token sales. Last October, the SEC dealt an unexpected blow to the upcoming TON blockchain, accusing Telegram of unregistered token sales a year and a half after the ICO. Due to the lawsuit, Telegram was forced to postpone the launch of the blockchain - a decision that was supported by ICO investors.

“Requested information about banking transactionsis extremely important for resolving controversial issues, including how much money and how Telegram spent developing the TON blockchain, integrating the Telegram Messenger application with TON and other areas of development,” — says the SEC request.

In the middle of last month, it became known that the banks BNY Mellon and Credit Suisse were involved in processing $1.7 billion from the Telegram ICO.

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