Copy link
Increase text size
Decrease text size
Link copied

Telegram’s claim “Grams will not be security once TON Blockchain launches” is insufficient, argues SEC

Fri, 18 Oct 2019, 12:51 pm UTC

In a new filing, the U.S. Securities has responded to Telegram’s counterclaim, arguing that the messaging giant is likely to violate federal securities laws again.

In response to the restraining order obtained by the SEC, Telegram had filed a counterclaim on October 16, insisting that Gram is not a security and requesting the court to deny the preliminary injunction.

The SEC did not take much time to respond with a new filing in the U.S. District Court for the Southern District of New York on Oct. 17, Cointelegraph reported.

The regulator argues that Telegram’s claim that “Grams will merely be a currency or commodity” and therefore not a security “once the TON Blockchain launches” is insufficient to rebut its prima facie showing for two reasons:

“First, whatever Defendants contend Grams “will . . . be” at some future date says nothing about what Grams were in 2018 when Defendants offered and sold them without a registration statement, which is the heart of the SEC’s claim that a past violation of Section 5 has occurred.

“Second, with respect to whatever Grams were in 2018 or what they will be whenever Defendants decide to distribute them, Telegram’s mere assertion that Grams “will . . . be” a “currency” does nothing to cure the prior violation of law.”

The SEC goes on to say that Telegram is likely to “again violate securities laws” and requests the court to grant a preliminary injunction. It pointed out that Telegram’s request to deny the injunction will allow them to “engage in violative conduct after five months, and put the burden on the SEC to seek another TRO [temporary restraining order] from the Court.”

“The Court should reject the requests in Defendants' Opposition in their entirety and require Defendants to abide by the requirements the Court has ordered,” the SEC said.

A court hearing in the case will be held on October 24 in New York.

Just recently, Telegram sent an email to its investors informing them about its plans to postpone the launch of the TON Blockchain to April 2020 and seeking their consent in this regard.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,119.00 (+5.96%)
  • Ethereum (ETH) $248.67 (+4.70%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $262.84 (+8.24%)
  • Bitcoin SV (BSV) $205.38 (+5.63%)
  • Bitcoin (BTC) $10,119.00 (+5.96%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft