Telegram refuses to account to the SEC for the $ 1.7 billion raised in ICO
Telegram Open Network , or TON , is the name of the blockchain that the messaging giant promoted in a private ICO, which involved 171 investors. According to its roadmap, the native token, Gram, was expected to launch by the end of 2018. However, Telegram has had to postpone the launch twice due to the US Securities and Exchange Commission (SEC) initiating an in-depth investigation of the project.
During the SEC's investigation into Telegram's TON blockchain, the Durov brothers refused a subpoena to disclose bank transactions related to the ICO. On Thursday, the TON founders were ordered to release their TON ICO documents to investigators. The order came via a court filing from the U.S. regulator.
[amazon box="B07G4S4S4H"]SEC requests information from its accounting books to Telegram
The United States Securities and Exchange Commission in a document made this request known:
“Plaintiff respectfully moves to compel Defendants to answer questions and provide documents regarding the amounts, sources, and use of funds raised from investors in connection with the unregistered sale of securities at issue in this case.”
The document also stated that "The requested bank records are highly relevant" to the issues in dispute in this case , "including how much money Telegram has spent, and in what way, on the development of TON Blockchain, the Telegram Messenger application to integrate with TON Blockchain, and related applications."
The orders must give regulators a list of the expenses made by the team during the last 2 years, but Durovs refuses to give that information.
The SEC cites securities law as a hedge for another ICO check. $ 1.7 billion has been raised, which is a large sum even for a successful software development company. However, it is not as easy to decipher the Durov brothers as someone might think:
"The defendants now refuse to disclose bank records on how they have spent the $1.7 billion they raised from investors over the past two years and to answer questions about the disposition of investor funds."
Initial Coin Offerings are frowned upon by the SEC
About a month before the official launch of Telegram's TON network (for fast and secure payments), the SEC attacks the development of the project. The Durovs didn't expect such a move.
In October 2019, the TON developers were almost ready to launch the mainnet. Instead, they issued a statement saying that negotiations with the US SEC are at a dead end. And the coin toss was postponed. However, the talks between SEC officials and the Durov brothers went on for at least 1,5 years. So this problem did not come out of nowhere.
Why did the SEC suddenly start claiming that GRAM tokens are securities? During the ICO, the founders of Telegram took precautions and restricted the participation of US citizens in the event. But a group of American investors found a way to buy tokens through third parties. Now, the SEC believes that it is its jurisdiction, so it ordered to stop the launch of the TON. The list of demands is growing, so it seems that GRAM it is a 'security'. It seems the only way to launch TON is to comply with the US.
