THELOGICALINDIAN - Telegram declared the US Balance and Exchange Commission SEC is aggression its authoritative authorization and misapplying balance law in a US cloister this anniversary The SEC meanwhile maintains Telegrams TON auction was an unregistered balance offering
Telegram ICO is an Investment Contract, Says SEC
In its motion for arbitrary acumen submitted to the cloister on Wednesday (January 15, 2020), the SEC maintained that Telegram’s Gram tokens are actionable securities. An extract from the motion quoted by Law360 reads:
According to the SEC, the $1.7 billion ICO satisfies the altitude set alternating by the Howey Test. The SEC additionally argued that Telegram investors apprehend to accumulation from the barrage of the TON blockchain and its closing affiliation with Telegram’s messaging app platform.
SEC is Overstepping its Mandate
However, Telegram countered the SEC’s argument, advertence that the Commission was attempting to aggrandize its authoritative administration to a atypical tech industry. According to Telegram, its ICO does not satisfy two belief beneath the Howey Test, arguing:
For Telegram, its antecedent clandestine auction avalanche beneath the Regulation D exemption, a point the SEC did not seek to counter. Instead, the SEC maintained that the accessible administration of Gram tokens nullifies any approved exemption.
Both parties are still bound in the acknowledged altercate with the cloister acclimation Telegram to aftermath bank records apropos to its $1.7 billion ICO. As a fallout from the acknowledged stalemate, Liquid canceled the auction of Gram tokens beforehand in the week, abiding funds already deposited by absorbed investors as per its agreement of sale.
The SEC’s investigation into Telegram’s ICO is additionally preventing the barrage of the TON blockchain. Investors have, however, reportedly agreed to advance the TON mainnet barrage till the alpha of Q2 2020.
Needless to say, this $1.7 billion dollar battle still appears to be afar abroad from catastrophe anytime soon.
Is the SEC aggression its authoritative authorization in its case of the Telegram ICO case? Let us apperceive in the comments below.
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