February 20, 2024

Telegram told about further actions in conflict with SEC

Telegram does not agree with the legal position of the SEC, but among the possible solutions it is considering delaying the launch of TelegramOpen 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.

&#171;We are surprised and disappointed by the SEC's decision&#187;.

Telegram lawyers are exploring several optionssolving problems that have arisen, including delaying the launch. At the same time, it is known that in the contract with investors the project has a deadline of October 31 &#8212; otherwise you will have to return the investment.

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 of the American investors in a conversation with 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 is awaiting a delay in the launch and registration of the Gram token sale in accordance with the established regulation &#171;A+&#187; similar to the Blockstack precedent.

The trial will be held on October 24.

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