The Russian-based giant company Telegram is facing the restrictions for Token sale because the Securities and Exchange Commission department (SEC) of the United States got an emergency restraining order from the court. Telegram gathers about $1.7 billion from the ICO.
39 US Investors
According to the official document of the complaint, nearly 2.9 billion GRAM tokens have been sold to 171 investors around the world at a discount rate. There are about 39 buyers are from the US out of total 171 buyers. It is said that these coins will be distributed among the respected holders before the launching of the Blockchain platform. According to the official announcement, its blockchain platform will be launched at the end of this month.
The complaint was filed by the SEC at the district court or Manhattan in which he alleged the company about violating the security regulations. They said that the company failed to register the coin offering because these tokens are considered as securities.
Tokens are Unlawfully Sold
Stephanie Avakian, CO-Director of the SEC Division of Enforcement, said that the emergency action is the need of the hour because the tokens are which unlawfully sold should not be circulated in the US markets. According to him:
“Our emergency action today is intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold. We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.”
Under US Regulations
This initiative on the part of the US regulation department put the Telegram’s cryptocurrency in the danger. However, the restraining order from the court is temporary but it will create a lot of complexities for the company. The Libra is also facing many strict policies imposed by the US regulators but after so many difficult inquiries it seems to be launched in the US but under strict parameters. The same situation has pop up for another giant firm called Telegram.
Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.