More

    Telegram Under Scrutiny by the SEC for its $1.7 billion Token Sale; Former Chief Investment Advisor Issued a Deposition to Testify

    Telegram is currently on the SEC radar as the U.S regulator wants the firm to clarify issues relating to its TON token sale back in 2018. The SEC has since made a request to England’s High Court to get the underlying documents as well as a testimony from Telegram’s former chief investment advisor, Hyman.

    According to the filings made through the U.S District Court in New York, SEC’s main agenda is to stop the launch of Telegram’s blockchain ‘TON’ which is to be accompanied by its native token sale ‘grams’. The commission has in the past touted grams to be unregistered tokens as per the securities legislations.

    Bone of Contention

    Hyman who has previously worked with Renaissance Capital and Morgan Stanley currently resides in the United Kingdom. The SEC now wants the former Telegram advisor to testify given his close involvement in TON’s token sales over the course of 2018 and part of 2019.

    Emails by Hyman to Telegram investors reveal that the firm may have breached some procedures in raising its $1.7 billion during the pre-token sale.

    Some of the irregularities in the email threads to investors include a follow-up on the gram token secondary prices despite Telegram’s intention wait until its network is running for valuation in the grey market. Hyman had also stated in the past that Telegram would have a 3rd round token sale for private investors but this never happened.

    In addition, advise to HODL gram tokens did not hold water for the TON investors as the tokens were accepted by several crypto markets/stakeholders.

    Pavel Durov, the CEO of Telegram, had introduced Hyman to a fair number of potential investors. These include popular figures in the FinTech arena like Softbank’s Rajeev Misra and Dave Munichiello from Google Ventures.

    These are some of the interactions that the SEC is after but so far has met resistance from Hyman who is yet to comply with a deposition issued against him.

    Earlier on, Hyman through his counsel Greg Campbell had agreed to appear for talks with the SEC.

    This has however took a different turn after Campbell went dark on the SEC ignoring emails and calls from the commission. The SEC has stood its ground that gram tokens are not exempted under the Regulation D securities and therefore Telegram mislead its investors during the token sale.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Lujan Odera
    Lujan Odera
    Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,261FansLike
    2,721FollowersFollow
    4,101FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Hacker Noon To Embed Blockchain Tech Into Its Blog, Allowing More Interactions With Readers

    Hacker Noon, a knowledge website, announced they will launch on a blockchain, shortly after leaving Medium for calls of centralization. The official announcement from...

    US Finance Giant Bottomline Testing Ripple’s Disruptive Technology

    Bottomline Technologies processes trillion dollars in payments every year and operates in 92 countries The idea is to update the company's software mode...

    SEC Strikes Against Yet Another Unregistered ICO to Recover $147,000 ‘Ill-Gotten' Gains

    In January, U.S. SEC has gone after 3 Initial Coin Offerings (ICO) SEC files complaint against Opporty and its sole owner Sergii Grybniak...

    Payment Provider Square Wins US Patent For Real-Time Crypto-To-Fiat Automatic Swaps

    Square has been awarded a patent for a payment network that will allow individuals holding various types of of assets to transact with each...

    The Bakkt Consumer App Will Do More Than Just Crypto Investing: Pres. Adam White

    Intercontinental Exchange’s CEO, Adam White announced the launch of its retail app in 2020. The app will tilt towards the traditional financial system...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.