Telegram Saga's Tale with SEC Ends at $1.2 Billion

David Kemp

The magistrate approves the closing verdict in the Telegram case; the company will give back $ 1.2 billion to financiers.

Judge Kevin Castel on 26 June, approved the ultimate decision in the case of SEC and Telegram, in line with which the Telegram platform will give $ 1.2 billion to stockholders in their initial coin offerings for the unsuccessful TON.

As it was announced, the closing solution was suggested the previous day. This altered the law court endorsement, finalizing the lawful performance that started with the SEC requesting a halt to Telegram's upcoming GRAM coin distribution.

In line with SEC's announcement of new sanction:

"Novel and groundbreaking companies can take part in our capital marketplaces, though they cannot do this in defilement of the record keeping necessities of Federal securities regulations."

In which way precisely Telegram or another possible Issuer of ICO might pacify the SEC at that stage is still an open and widely debated issue.

The law court extended the ban on the auction of virtual currency of Telegram

As reported previously in February, the court in New York’s southern district has upheld a ban on the Gram digital tokens sale to Telegram Group Inc. The period of the ban will be declared later, reports TASS from the courtroom, which issued a decision on Wednesday.

Judge Kevin Castel, who gave the US SEC lawsuit against Telegram, clarified that he would determine the further duration of the restrictive measure later. Telegram Group Inc. pledged not to trade or distribute Gram tokens in any way pending the end of the court hearing on February 19, previous October, when the arrangement of both case parties in the was approved by the high court. Agents of the SEC asserted on a prohibition for the entire stretch of the hearing.

Alexander Talevski, the lawyer representing the Telegram interests, remarked that the firm is prepared to accept the restrictive measure. He noted that the entity has time until April 30 to fulfill its duties to individuals who earlier acquired Gram. The representative of SEC claimed that Gram must be accepted as a security, the attorney - that Gram is a crypto asset.

Previously on the topic: the SEC with Telegram made official objections to each other

Last October, the SEC filed a lawsuit and got an impermanent ban on the issuance of the Gram cryptocurrency by Telegram Group Inc. as well as TON Issuer Inc. It was not, in line with the SEC, listed as securities issue. Pavel Durov, founder of Telegram suggested returning the funds to stakeholders, and they agreed to wait. As a result, the introduction of the digital ledger platform was suspended to the spring of 2020.

Telegram was accountable to the depositors for the shares of SEC

The hearing was scheduled for October 2019.The creators of the TON replied to their financiers after US regulators suddenly declared that the public sale of its $ 1.7 billion coins was unlawful.

No clear feedback from the SEC for 18 months

As written in a letter from TON to stockholders, the company was trying to get a response from the US SEC over the previous 18 months concerning the TON ledger and does not agree with the latest action. He texted:

"SEC’s decision to file a lawsuit in these circumstances surprised and upset us, so we do not agree with the SEC's lawful position."

SEC criticized for lack of precision regarding cryptocurrency

The SEC was sharply criticized for its absence of clarity on crypto assets and ICOS. At the end of September, a team of policymakers from the US Congress directed a letter to the body's Chairman, Jay Clayton, calling on the Commission to question clear guidelines on digital assets. Earlier, Warren Davidson organized a round table on cryptocurrency, where members stated their concerns about the current authorized framework for ICO and virtual assets.

Previously, libertarian think tank Competitive enterprise’s John Berlau, a senior member, disapproved of the SEC's tactic to regulate crypto funds, saying its "onerous regulation" is killing transformative modernization. He additionally claimed that the SEC's review could compromise the blockchain technology’s functionality if the Agency accepts digital currency as securities.

In the beginning, US lawmakers have again passed a law on the taxonomy coins, the purpose of which is to eliminate the cryptocurrency of the securities laws.