court for the southern district of new York extended indefinitely a ban on the sale of digital tokens Gram for Telegram company Group Inc.
Judge Kevin Castel, considering the claim of the Commission on securities and exchange Commission (SEC) by Telegram, announced that it will be decided later, for a period to enforce the measure.
Lawyer Alexander Talevski representing the interests of the Telegram, noted that the company has until April 30 to meet its obligations to persons who previously purchased tokens Gram. Until the end of April investors will wait for the launch of blockchain-TON platform (Telegram Open Network) without requiring repayment. Castle confirmed that he was aware of this agreement.
the SEC Representative in court insisted that the Gram should be regarded as a security lawyer that Gram is a cryptocurrency. Telegram agreed not to sell or distribute in any way the Gram until the completion of the hearing on February 19, in October last year, then the agreement of both parties in the case adopted by the court.
the Trial between the SEC and the Telegram began in the fall of 2019, the U.S. regulator has made the ban on the production of Gram, scheduled for the end of October of the same year. SEC considers Gram securities and insists that it is necessary to apply the securities laws, in particular, the Issuer is required to disclose information about the financial condition of the company.
After holding the ICO, during which the project of Pavel Durov has attracted $1.7 billion, the Commission found that the company sold tokens illegal, because Gram is not registered in any jurisdiction, and investors have no access to the financial history of the company. In January, the court granted the petition of the SEC for disclosure of the data Telegram on his banking operations until February 26, as the Commission had proved that released tokens were sold in the framework of ICO, that is actually used as securities.
In support of its case, the SEC presented evidence that the sale of tokens Gram was carried out even after finishing the main part of the campaign with third parties.
So, the SEC has independently obtained some account, according to which on 20 June 2018 the company Da Vinci Capital sold the tokens Gram Fund ITI Funds by more than $2 million, and the company Gem Limited — €7.2 million firm Goliat Solutions and $4.5 million — Space Investments Limited in early July of 2018, According to the SEC, this information refutes the statement in the Telegram that the offer to sell the tokens was performed on exceptional conditions.
the Commission suggest that the Telegram could attract more than $1.7 billion or, conversely, get the specified amount using the services of the underwriters. So, in March 2018 Telegram notified the SEC that raised $850 million from investors. In fact, the company at that time was only $490 million, according to published documents. As follows from the testimony of one of the top managers of Telegram, announced $850 million — contracts of sale.
In the Telegram declared that never considered the token security. But, as follows from published materials (except the application also published the correspondence of the staff of the Telegram, both among themselves and with investors), the company talked about Gram as a security. In emails to investors, the project relied on the “sale of Gram” and not on “the sale of a stake in the right to receive Gram,” said the SEC.
In March 2019 employee Telegram Shyam Parekh in correspondence with the investor called the Gram “securities” (securities), writing that the investment Fund who requested 72.8 million tokens, “is fully entitled to such securities” and used this word in the future.
in addition, the SEC found that in the Telegram were aware of the fact that investors are trading their tokens on the secondary market. Moreover, the employees of the company were interested in the situation with the rising cost of cryptocurrency. For example, one of the investors wrote to the investment Advisor Telegram to John Hyman, the tokens have increased in price from 60-70 cents to 70-90 cents in February 2018.
the Decision to ban the production of Gram contradicts statements made by the SEC’s desire to cooperate with the developers of the technology believe in the Telegram. In the documents the company States that “the regulator’s decision was criticized as legislators of the United States and one of the members of the SEC.” Telegram also accused the SEC that the regulator failed to provide clear regulation of this area and has judged her for the publication of the correspondence between the representatives of the Telegram and investors.
Responding to a claim Adjuster about the formation of the secondary market of Gram to run TON, Telegram States that have made efforts to curb the resale of Gram. For example, it took investors a commitment that they would not directly or indirectly resell cryptocurrency before the official launch of the platform.
Investors, as reported by Forbes, decided not to demand repayment despite the postponement of the launch of cryptocurrency. The Interests Of The Telegram Group Inc. and she owned TON Issuer Inc. represented by the law firm Skadden, Arps, Slate, Meagher & Flom. The firm filed the petition Telegram Group Inc. and TON Issuer Inc. are the defendants in the lawsuit filed by the SEC in the court of the southern district of new York.