Telegram has not had the easiest year with regards to the Securities and Exchange Commission as just a few weeks before the official launch of the GRM token, the SEC filed an injunction against him to stop them from continuing any activities regarding GRM with the opinion that it is an illegal security token. This draws parallels to the issues that surrounded Kik when they launched their Kin token and ended up suing the SEC for miscategorization of what they insist is a utility token and not a security token. Telegram has gone on to request that the courts block this Injunction and what they call an act of sabotage by the SEC.
Unfortunately for Telegram, it seems this issue will take a bit longer to resolve as the latest court ruling from United States District Court for the Southern District of New York has postponed their hearing for the SEC to February 18-19, 2020.
Previously, it was stated that the SEC and Telegram would have their day in court on October 24, 2019 but that seems to not have changed to a date in February 2020.
“IT IS ORDERED that Defendants shall not offer, sell, deliver, or distribute “Grams” to any person or entity, until the conclusion of the hearing scheduled by the Court for February 18 and 19, 2020 (“Hearing”), except upon further order of the Court or agreement of the parties. At the Hearing, any party may move the Court for the continuation or dissolution of this Order,” the document says.
The SEC has alleged that Telegram violated securities laws by issuing an unregistered and unregulated token and also by trying to stop its injunction against them. They state that should the blocking of the injunction go through, Telegram will be allowed to carry out activities regarding the illegal token for about five months after which the SEC will be forced to get yet another injunction against them. On Telegram’s part, they state that they had tried to communicate with the SEC for a period of 18 months but received no response from them only to be ambushed with an injunction just weeks with a launch of their token. According to them, this was an act of sabotage by the SEC and one that the intend to prove to the courts.