SEC-Telegram Battle Continues

It seems that the battle between the most popular messaging service company Telegram and the US Securities and Exchange Commission (SEC) has not yet ended. The market watchdog has come down hard again with new statements as regards Telegram.

SEC claimed that the messaging service provider saw its upcoming coin Gram as a security. Thus, the market regulator has filed another claim to New York District Court.

Shyam Parekh, investor relations manager at Telegram, said an investor has the right to 72,835,916.68 Grams, referring to the Grams as securities. “Such securities are not pledged,” he added.

SEC claims Parekh’s words boosted volumes, noting that the official should have used more accurate phrases.

The court earlier ordered the messenger service company to submit its banking statements to SEC by February 26.

The order came after SEC requested the court to force Telegram to submit some documents related to the sale of its Gram token sale, though which the company raised $1.7 billion. The regulator considered the sale as an unregistered offering, while the messenger service company claimed an exemption from US regulations to register such offering.

Telegram has issued an initial coin offering (ICO) in two private placements, with the aim of using its proceeds in establishing a decentralized network for the app.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.