SEC Restricts Telegram from Tokenizing


The United States Securities and Exchange Commission has disclosed its intention to sue two establishments, Telegram and TON, for the possession of unregistered coin exchange.

In the filing documented against Telegram in the Federal District Court in Manhattan, the organization declares that Telegram made sales of about 2.9 billion cryptocurrency coins (GRM) to an aggregate of one hundred and seventy-one patrons for $1.7 billion. About $424.5 million of that amount is alleged to belong to thirty-one U.S. citizens.

Consequently, the organization has procured an interim restraining order barring the company and its blockchain, TON from dropping an ICO. The regulatory authority is aspiring to gain “certain emergency relief”, also, to procure lasting sanctions. This new development has caused the company to reconsider the preliminary debut period of TON which was set on the 31st of October.

Trouble for TON’s $1.7 Billion Listing?
The issue relating to the TON coin trade started when the biggest possessor of the GRM coin, Gram Asia, began trading the holding to its GRM possession in collaboration with Japan-based cryptocurrency exchange, Liquid, at $4 for a coin, thereby multiplying the prior price of $1.33.

The exchange of TON tokens violated the set investment agreement. As stated by the contract, buyers were requested to not sell the holding rights before the release. This has caused the organization to step in, days before the debut of TON, with a restraining order, stopping the listing.

The organization’s complaint declares that Telegram failed to report the exchange of the GRM, which is regarded as a security by the SEC.

The Securities Act of 1993 which specifies that every security is enlisted with the organization, which has caused the organization to consider the exchange of the GRM found as “unlawful”.

However, based on reports, Telegram notified the organization that its $850 million ICOs were formulated based on Rule 506(c) and Regulation S under the Securities Act of 1993. This implies that since the GRM coins were traded solely to accredited investors, there was no requirement for the product to be enlisted with the organization.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.