The growing tussle between a messaging company Telegram and U.S Securities and Exchange Commission (SEC) has taken a step forward. The market regulators are suggesting that Telegram considered its upcoming Token as securities and henceforth should be included under established regulations.
Whether Gram Token is a Security?
The dispute of TON blockchain and cryptocurrency Gram has continued. Recently, another claim is filed by the SEC with the court in the Southern District of New York.
Now, it is indicated by market regulators that Pavel Durov’s Telegram knew that Gram Token would be a security. If it is treated as a security, it needs to fall under already established guidelines, considering that security tokens are tradable economic property that requires private identifications.
Moreover, on March 6th, 2019, an email was sent to an accountant of an investor. This raised awareness when new documentation was delivered to the U.S. court. Shyam Parekh, a Telegram official, reportedly wrote that the investor had the right to 72,835,916.68 Grams and that “the Fund has clear title to such securities.” Furthermore, in the same email, it also reflects that “the securities are not pledged.”
When Telegram acquired $1.7 billion with its token sale in 2018, SEC considered it illegal because Gram lacked prior registration in any jurisdiction. The commission requested access to the financial records of the company, which was initially rejected.
However, it was later decided by that Telegram has to unveil all financial records regarding the token sale. The entity is required to provide the information until February 26th, 2020.
Liquid Aborts Gram Sale
The implication of legal issues of Telegram with SEC arose from Liquid, a Japanese cryptocurrency exchange. Initially, Liquid started a token sale named as Gram Token Sale in July 2019. Previously, it was assumed that the mainnet network of TON will begin before the end of October 2019.
Liquid cancelled the sale, because of delay in launching of mainnet and unknown release date, and is going to refund who participated in the sale. The Gram Token Sale got cancelled and the funds have been paid back to the users of Liquid who participated in the sale.
Liquid is needed to return all funds executed, in Gram Token Sale, by users due to delay in launching of TON mainnet that was supposed to be launched on 30th November 2019.
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