United States authorities file suit to suspend Telegram ICO

United States authorities file suit to suspend Telegram ICO

"Our urgent actions today are created to prevent Telegram from flooding the American markets with tokens, which we assume were sold illegally", the SEC spokeswoman Stefani Avakian said in a statement. "Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities created to protect the investing public". The company also promised to deliver the digital tokens to the initial purchasers upon the launch of its blockchain by October 31, 2019.

The SEC states that the defendants sold approximately 2.9 billion digital tokens called "Grams" at discounted prices to 171 initial purchasers worldwide, including more than 1 billion Grams to 39 USA purchasers for around $424.5 million. The Telegram group started working on its blockchain project known as Telegram Open Network (TON) since January 2018. 171 investors took part in the ICO, 39 of them are USA citizens.

The complaint alleges that the defendants failed to register their offers and sales of Grams, which are securities.

Choosing to launch their network and native token without regulatory consultation was seen as a bold move from Telegram; however this appears to have backfired as the SEC has finally chose to "halt" their token offering. But Telegram never registered the sale, and as a result it broke the law, the SEC says, and may have to forfeit the $1.7 billion it's raised.

PM Modi cleans TN beach ahead of talks with Xi
Trade, especially the Regional Comprehensive Economic Partnership ( RCEP ), is also expected to be a focus of the Xi-Modi talks. Speaking at a global diplomacy level, Jinping said, "Differences between the two countries should be viewed in a correct way".

"We have repeatedly stated that issuers can not avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token", writes Steven Peikin, fellow co-director of the SEC's Division of Enforcement, in a statement.

The company has not disclosed the details regarding its development work. Telegram had not publicly acknowledged that it was developing TON until earlier this month, after it informed its investors via an email that the platform would go live in late October.

Coinfomania: Where blockchain and cryptos live.

For this reason, the SEC asks to block GRAM on the evidence of a violation of the laws of the United States of America.

Related News:



Most liked

Hunter Biden Resigns Chinese Board
The attorney says Hunter Biden pledges to avoid conflicts of interest should his father be elected president. Hunter Biden is stepping down from the private equity firm BHR, Bloomberg first reported on Sunday.

Uber to Acquire Chilean Grocery Startup That Walmart Failed to Buy
After the investment closes, the press release indicated that Cornershop will continue to operate under its current leadership. The deal, of which the terms remain undisclosed, continues Uber's drive to diversify its business beyond ride-hailing.

Putin doubts Turkey's ability to control terrorists in Syria
Russian President Vladimir Putin said Iran's missile programme should be dealt with as a separate matter to its nuclear programme. Pentagon officials say intelligence-collection capabilities of the S-400 would endanger US planes operating in the vicinity.

U.S. troops retreat from Syrian town under attack
A spokesman for the National Army denied this, saying its forces were still in the positions they took on Saturday. President Tayyip Erdogan has threatened to send them to Europe if the European Union does not back his assault.

Renault seeks reboot of Nissan alliance after ousting Chief Executive
Ghosn, who led the Nissan-Renault-Mitsubishi alliance, is now awaiting trial and denies wrongdoing. Renault owns 43% of Nissan but their alliance came under strain after Ghosn's jailing.

Nick Jonas gives thumbs up to Priyanka Chopra's 'The Sky Is Pink'
The film is produced by Siddharth Roy Kapoor, Priyanka and Madhu Chopra, Ronnie Screwvala and Kilian Kerwin. Priyanka too couldn't help but gush over her "babe's" gesture and shared the same on her Instagram story.

Protest leaders in Ecuador accept talks with govt as unrest roils capital
Moreno moved his government base from Quito to the coastal city of Guayaquil earlier this week to escape the violence. Past indigenous protests have brought down presidents in Ecuador, but Moreno says he is not quitting.

Google’s Pixelbook Go Leaked in Full Hands-on Video
The Pixel 4 and Pixel 4 XL will also feature 6GB of RAM, 64GB or 128GB of storage, stereo speakers, and a USB-C port. This might well be the most leaked smartphone series in the history of the smartphone.

Nationals head home up 2-0 in NLCS
The Astros got off to quick 4-0 start in Game Five and never looked back as they now prepare for the New York Yankees. He's pitched in four playoff games against Milwaukee and the Los Angeles Dodgers, throwing 3 2/3 scoreless innings.

5 things to know about Liam Hemsworth's rumoured new girlfriend Maddison Brown
She and Carter shared a brief romance before Cyrus was recently seen kissing Australian singer Cody Simpson . She also appeared in 2015′s Strangerland opposite Nicole Kidman .

Deadly shooting in Brooklyn
Officers had not previously received any complaints about the location, Chief of Patrol Rodney Harrison said. Four homeless men were beaten to death by another homeless man October 5 in the Chinatown neighbourhood.

Multiple People Shot at New Hampshire Church
The shooting came just hours before a service was to be held for a church minister who was shot in the neck and killed last week. Garcia was shot dead on October 1. "Today was supposed to serve as a celebration of the life of Minister Luis Garcia ".

Brexit negotiators set to work through the weekend
The pair are attempting to strike a deal before the proposed Brexit date of October 31. A statement from the UK Government also described it as a "constructive meeting".

Coco Gauff reaches maiden WTA final at Linz Open, meets Jelena Ostapenko
The youngest-ever victor of a WTA Tour title was two-time US Open champion Tracy Austin, aged simply 14, at Portland in 1977. The present world quantity 110 is ready to climb to at the least 80th within the rankings subsequent week.

Medvedev into Shanghai Masters ATP final
Medvedev has now seen off the 21-year-old - who defeated World No 1 Novak Djokovic on Friday - in all five of their matches. Medvedev took a tense and nervy opening set on a tie-break and broke early in the second to seize control of the contest.