SEC Halts TON’s GRAM Token Sale; Telegram To Delay The Launch Of Its Digital Currency
The U.S Securities and Exchange Commission has managed to acquire a restraining order to stop the sales of the tokens in the state against a well known encoded messaging application – Telegram, which has around 300 million clients. The company may delay the launch of its digital currency after the lawsuit was filed. According to a letter received by The Block, the privacy messaging giant told its investors that they were amazed and baffled that the SEC filed the suit.
The charge claimed that Telegram had purchased 2.9 billion “Gram” tokens by the first buyers at reduced costs worldwide. This included more than 1 billion Grams purchased by U.S. purchasers. When the lawsuit was made open last week, it disclosed that the fund-raising that had taken place in the U.S was illicit since Telegram never enrolled in it with the regulator. Telegram is said to raise more than $1.7 billion funds from investors in the U.S promising them the delivery of its tokens.
In a letter to its investors reported by Bloomberg, Telegram states that it has made attempts to resolve its TON (Telegram Open Network) blockchain project with the securities regulators for over the past 18 months. Presently, Telegram has made it clear to the investors that it will delay the launch of its token which was initially set to go live by Oct 31, as the firm needs a sheer understanding on the lawful status of the TON project and its Gram tokens
The SEC had requested Telegram to acknowledge an administrative written order in the lawsuit to which the firm did not pay much heed. Partially as a result of this refusal, the SEC said that it had no other option but to file a case. The court hearing is set to take place on the 24th of this month.
A senior member at libertarian think tank Competitive Enterprise Institute – John Berlau, reprimanded the SEC's way to deal with managing cryptographic forms of money, contending that its difficult guidelines hinder the transformative advancement. The SEC has had long-standing concerns concerning the crypto business. In the past too the securities regulators have become a barrier for the digital-token market and have also kept numerous away from making ground in the states.
U.S. legislators had reintroduced the Token Taxonomy Act that expects to prohibit crypto from securities laws towards the beginning of April this year.