SEC Sues Telegram to Halt $1.7 Digital Token Offering
The US Securities and Exchange Commission (SEC) has filed an emergency action and received a restraining order for the $1.7 billion planned token offering of Telegram’s blockchain. According to the SEC complaint, Telegram failed to register its offers and sales of the tokens, which the SEC considers to be securities.
Telegram Group and its TON Issuer subsidiary began raising capital in January 2018 to finance the company’s business, including the development of the TON blockchain and Messenger. The defendants sold 2.9 billion tokens at discounted prices to 171 initial investors, including more than 1 billion of the company’s tokens to 39 U.S. buyers.
Telegram has a legal deadline to launch Gram until October 31. Otherwise, it forfeits the money it raised.