Telegram Could Delay The Issue Of Its Crypto After The US Stops Token Sale
On Sep 12, 2020
Telegram, the popular messaging app offering encrypted messaging service, could defer the issuance of its digital currency since the United States Securities and Exchange Commission (SEC) has ordered the company to cease the reportedly unlawful sale of its Gram token in the nation. Initially, Telegram had plans of conducting its crypto issuance by October 31, 2019.
As per the latest Bloomberg reports, the company informed its investors through a note that it is contemplating the means to find a solution to SEC’s interim restraining order. Telegram’s note also indicated the likelihood of delaying the planned crypto issuance post the deadline of October 31.
Certain Emergency Relief
For those who are unaware, the Commission had filed for, as well as acquired, urgent action and restricting order stopping Telegram from distributing or selling its tokens in the United States in the previous week on October 11, 2019. The SEC stated that Telegram had sold about 2.9 billion of its gram tokens for a whopping 1.7 billion dollars to around 171 buyers. Apparently, around 424.5 million dollars of that total amount belonged to 31 US-based buyers. The company allegedly carried out this operation without registering its offering with the regulators.
Therefore, the SEC went on to acquire the interim restraining order against both Telegram and its crypto division TON. The order has sought “certain emergency relief,” along with permanent injunctions and disgorgement with civil penalties and prejudgment interest.
Telegram, in its recent note to all its investors, has also stated that they have been discussing the TON project with the Commission for over a year and are surprised, as well as disappointed, with the SEC’s stance of filing the lawsuit against them under such circumstances.