Telegram has agreed to provide documents to the SEC regarding the distribution of Gram tokens and the purchase agreements of 2018 Telegram ICO.
08 May, 2020 | AtoZ Markets – Telegram, the online messaging app, has big plans for its Telegram Open Network, or TON, blockchain. It had one of the biggest token sales in 2018, which faces a huge legal battle. The SEC sued the company to shut down the TON network, saying its gram tokens were unregistered securities. The Telegram claimed that grams were a commodity. A New York federal judge also issued a preliminary injunction in agreement with the SEC, preventing Telegram from issuing tokens.
Telegram Agrees to Hand Over ICO Documents to SEC
Now, Telegram has agreed to provide the Securities and Exchange Commission (SEC) with additional information on its 2018 ICO. With Telegram ICO Hand Over to SEC, information “concerning all assets paid to original buyers under purchase agreements and assets received from related initial buyers with the termination of purchase agreements “will also be provided.
Telegram also signed an agreement with the regulator which all requested financial documents should be provided before 20 May. The documents include information on the agreements proposed or concluded with the first investors of the Telegram Open Network (TON). The company will provide additional bank records to the regulator and answer to questions about the financial statements it has already submitted.
Besides, Telegram will respond to any questions the SEC may ask regarding information the company has provided in the past. Telegram said, “it agreed to provide its communications concerning any agreements offered or entered into with the original purchasers of its Gram tokens.”
Telegram also accepted the SEC’s requests in February and agreed not to oppose them based on timeliness. However, the company has reserved all other rights and objections.
The SEC hopes the information will demonstrate how much Telegram has spent from funds which it raised in two token sales in 2018. Besides, Telegram will reveal details of the Gram tokens offering, which ultimately allowed app owners to raise $ 1.7 billion from American investors.
Telegram previously argued that its bank statements comply with foreign data protection laws. But the SEC stated that “Telegram does not even mention the names of foreign countries whose laws may apply. It doesn’t cite any specific data protection law. “
SEC Prevents Ton Blockchain Launch
At this point, Telegram has nothing to gain by fighting the SEC. Courts have sided with the SEC at every step preventing the Telegram from launching its TON blockchain. It is due to concerns about unregulated security.
Telegram postponed a second time the launch of its TON blockchain on 29 April. It first postponed the launch in October 2019. But now it postponed it to 30 April 2021. The company also announced that it would offer to return up to 72% of each investor’s stake.
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