- Telegram agrees to give ICO documents to the SEC
- The regulator halted Telegram’s offering over unlicensed securities offering
- Telegram will provide additional bank records to the SEC
Cryptocurrency News Today – Telegram has agreed to provide the United States SEC with the communications data relating to several purchase agreements between the company and the purchasers during its 2018 ICO. Telegram has reportedly filed an order of consent. This agreement has ensured that it provides a trove of documentation and communications data requested by the Securities and Exchange Commission on May 7.
The communications data requested by the SEC concern the distribution of Gram tokens issued by Telegram and several purchase agreements relating to the company’s 2018 initial coin offering.
The SEC Halted Telegram’s Offering Last October
Telegram’s consent to give the SEC said documentation and communications data comes amid reports of the TON (Free Telegram Open Network) community’s decision to go live on a version of TON’s Blockchain through a fork. Recall that the SEC initially halted Telegram’s ICO offering in October of 2019. Telegram was accused of conducting an unlicensed offering of securities. Now over six months of proceedings have passed, a New York District Judge is known as P. Kevin Castel eventually issued a preliminary injunction.
The injunction was issued on March 24, this move bars the firm from launching the TON Blockchain. U.S investors have been refunded at a 72 cents rate on the USD. All international participants are also taking a 72% refund. Also, they can wait until the month of April next in exchange for a refund of 110%.
Telegram consents to SEC discovery
Telegram agreed to offer the United States SEC with “the communications data regarding all agreements offered or reached with all of the Initial Purchasers” of the firm’s Gram tokens by May 20 this year. The firm will also be required to provide additional bank records to the U.S. regulator. Telegram will respond to questions about all financial statements that it has submitted to the regulator.
Information “relating to any assets disbursed to the Initial Purchasers under all Purchase Agreements and assets gotten from Initial Purchasers linked with the termination of Purchase Agreements” must also be provided by the firm. Telegram agreed to the United States SEC’s discovery requests since February this year. The company has agreed that it will not do so on the basis of timeliness.
The firm has reserved its rights and objections. Note that Telegram’s consent order was filed the same day with that of the ‘Free TON’ community launch (a TON Blockchain version). It was done in apparent defiance of the SEC and the founder of Telegram Pavel Durov. Now, the Free TON community has stated that “its initial creator, the TON Blockchain, will not be involved any longer.”