The SEC, last week made an announcement that it had obtained a temporary restraining order for telegram’s allegedly unregistered coin offering. As per the lawsuit filed by SEC, the court for the Southern District of New York is set to review the case against the messenger’s ICO on October 24.
Telegram’s anticipated initial coin offering, which was previously conducted last year, drummed up 18 USD 1.7 billion from the sale of about 2.9 billion tokens. The commission insists that investors located in the United States had purchased GRM tokens worth approximately a quarter of that amount or amounting to USD 425 million. It cites two entities, that is telegram group Inc. and its subsidiary TON Inc., which are also both mentioned in the complaint.
Other sales have been held before the coin’s upcoming public release date, with the SEC holding the view, that is illegal fundraising through an unregistered offering of digital tokens. In one of them, early investor, Gram Asia offered to sell its rights to grams on the Japanese exchange Liquid, the summer of 2019, at USD 4 per token. On the other, hand private investors paid a neat USD 1.33 per piece in the second coin offering that was conducted last spring.
It should be noted that Gram is the native token of the telegram network, TON, which is a blockchain that seeks to support smart contracts and decentralized applications. It is also focusing on the provision of instant messenger services to its users who are above 300 million as per estimates. Each of the users is set to get a TON wallet.
The Graham token will be used to pay for services that are provided by the applications built on the platform. These include such services as decentralized data storage TON based domain name registrations and privacy-oriented features and Systems designed to bypass censorship. Grams will be available for external use as well as being traded on digital asset exchanges like any other cryptocurrency.
The legal skirmishes accumulated since the SEC’s announcement has thrown a shadow over the future of the project. In response to investors, the developers explained that they were also shocked and dismayed by the regulator’s sudden crackdown, which comes after telegram has tried for over a year to acquire the SEC’s position on the offering.
It is reported that as of current, the team is considering different ways to address the commission’s diminishing move, and the options include a delayed start. Other possible outfits include the launch of a beta version of the project by the end of October, which is something that the team had already promised its investors.