September 21, 2020

Telegram told about further actions in conflict with SEC

Telegram does not agree with SEC legal position, but considers possible postponement of Telegram launch among possible solutions Open Network (TON), a letter to investors read by ForkLog reads.

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Over the past 18 months, TON developers have allegedly tried to establish communication with the department and receive feedback.

“By the SEC decision, we are surprised and disappointed.”

Telegram lawyers are exploring several optionssolutions to problems, including delayed launch. It is also known that in the contract with investors the project is deadline until October 31 - otherwise, investments will have to be returned.

The private Telegram channel for investors TON Board deleted all previous messages and announced that it would resume activity when the legal status of TON and Gram became clear.

Recall, on October 11, the SEC disclosed information aboutlawsuit against Telegram Inc. and Ton Issuer Inc. The agency is seeking to block the distribution of Gram tokens. It has already achieved a temporary ban through the court until the asset enters unregulated markets (cryptocurrency exchanges).

According to the Commission, the token does not have utilitarian properties and is an unregistered security. Investors are counting on profits; no products or services can be purchased for Gram.

39 US residents allegedly participated in the ICO,who acquired Gram for $ 424.5 million. This provided the SEC with jurisdiction over Telegram. There was an unfavorable situation for the involved venture firms.

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The lawsuit was immediately filed with the Manhattan Federal Court inadministrative bypass, as Telegram allegedly refused to cooperate when it received the summons. A federal judge has broad powers and can set precedents.

One American investor talking to TheBlock said that the developers intended to make the project even more “decentralized” in order to avoid a conflict in the legal field. Now he expects a delay in launching and registering the Gram token sale in accordance with the established “A +” position by analogy with the Blockstack precedent.

The trial will be held on October 24.

The situation with TON has demonstrated that the sale of SAFT contracts will not protect projects from the recognition of their tokens by securities.

Earlier, the SEC fined the startup Block.one for $ 24 million for the sale of unregistered securities during the ICO EOS. Some representatives of the community have already indicated that measures against Telegram turned out to be much tougher.