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Telegram: SEC Halts $1.7 Billion ‘Unlawful’ Token Issuance

October 13, 2019 at 7:16 AM | By Jit Sutradhar News

The US Securities and Exchange Commission (SEC) got an emergency restraining order against telegrams Group and its subsidiary Issuer TON for sale token of $ 1.7 billion.

The SEC announced Friday that it filed and received a restraining order emergency action and stop Telegram to sell or distribute their gram chips within the US The network is supposed to go live on October 31 otherwise.

Telegram sold 2.9 billion gram chips “at reduced prices to 171 initial purchasers worldwide,” the statement said. This included more than 1 billion grams sold to US investors. However, the lawsuit alleges Telegram offer or sale is not recorded.

Compliance Division of the SEC co-director Stephanie Avakian said in a statement that emergency action is “intended to prevent flooding Telegram US markets with digital signals allege were sold illegally.”

Telegram was unable to provide its investors with information about the token gram and wholly owned operations telegram he said.

Fellow co-director Steven Peikin added:

“We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token. Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”

Long-term project

Telegram has been developing its blockchain TON project for over a year, with rumors of its initial supply of currency in circulation in January 2018. Sources familiar with the project said later CoinDesk messaging platform that sought to raise up to $ 600 million in a pre-sale and another $ 700 million through a public offering.

Ultimately, he said Telegram to raise $ 1.7 billion in the disclosure form D filed with the SEC in March 2018.

The company has been secretive about its development work, only the code of the publication of the network last month. Telegram not yet publicly confirmed it was working on TON until this month, after investors first email to confirm its launch in late October and then its terms and conditions are updated.

Although the token gram is not yet online, a secondary market cryptocurrency has broken out, with exchanges of small encryption and counter trading desks promises for once tokens are issued.

Crypto Coinbase exchange has also announced support for gram custody once tokens are issued.

Emergency action SEC Friday just days after it was installed with Block.One, the company behind the project EOSIO EOS token. While Block.One raised $ 4 billion, the SEC only secured a fine of $ 24 million, and will not require Block.One EOS register as a guarantee.

Telegram image via Shutterstock

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

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