October 14, 2019, | AtoZ Markets – Last week, the U.S. SEC obtained a restraining order to prevent the launch of telegram token in the U.S. Telegram. In a note to investors, they are considering ways to resolve the restriction order and may delay the launch of cryptocurrency. The SEC had alleged that the message giant Telegram had made an illegal coin offer.
SEC Telegram Token Lawsuit
The popular messaging app Telegram plans to postpone the launch of its long-awaited cryptocurrency. In 2018, Telegram raised more than $1.7 billion in its initial coin offering, which the SEC has called it illegal. Telegram told investors it was evaluating ways to address the SEC’s concerns, including a possible delay in issuing the tokens beyond this month’s deadline.
The SEC reported that the company sold 2.9 billion tokens worldwide, including more than $1 billion to U.S. investors. The SEC also alleged that Telegram had not registered the offer with securities regulators. Earlier, the New York Times reported that if Telegram does not issue its token by the end of the month, the company may have to return the funds to investors.
Telegram told investors they had been arguing with the SEC for more than a year over the TON project. The company also said that it was surprised and disappointed that the SEC decided to sue in these circumstances.
Telegram continued to say that it is evaluating how to resolve the situation. And, as such, they plan to delay the launch of the TON token. They are continuing to assess the best ways to solve the case in the interest of relevant parties. But they are not limited to, the assessment of seeking to postpone the launch date.
The TON Board Channel in Telegram announced on Saturday, October 12, has eliminated all of its previous publications. And it has announced that it will be “take a break” in the face of the regulatory uncertainty that it is currently facing.
New York Times reporter Nathaniel Popper writes on Twitter that the SEC’s filing against Telegram could involve a lack of judgment on the part of some of the largest venture capital firms that have invested in the project. SEC’s decision to close Telegram’s cryptographic project raises questions about the large venture capital firms. That gave it $1.7 billion, and they are confident that it would be approved. This includes Benchmark, Sequoia, and Lightspeed.
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