Categories: News

Telegram Gives Consent to Provide SEC with Trove of ICO Documents

Telegram announced filed an order of consent to provide a trove of communications and documents requested by the Securities and Exchange Commission of the United States (SEC). The communications are related to the distribution of Gram tokens from Telegram and the purchase agreements related to its initial coin offering (ICO) for 2018.

The consent of Telegram comes in the midst of the decision by the Free Telegram Open Network (TON) community to launch a TON blockchain version via a ‘fork.’

In October 2019, the SEC halted Telegram’s offer for conducting an unlicensed securities offer. New York District Judge P. Kevin Castel issued a preliminary injunction on March 24, this year, barring the company from launching TON after six months of proceedings.

The US-based investors are being reimbursed at a rate of 72 cents per dollar, while international participants can now take a 72 percent reimbursement or wait for a 110 percent reimbursement until April 2021.

Telegram Consents to SEC Finding

Telegram has agreed to provide the SEC with its Gram tokens by May 20 with “its communications regarding any agreements offered or entered into with the Initial Purchasers.”

The company will provide the regulator with additional bank records, and answer questions about the financial statements it has already submitted.

Information “regarding any assets disbursed to Initial Purchasers under the Purchase Agreements and assets received from Initial Purchasers in connection with the termination of the Purchase Agreements” will also be provided.

Telegram also agreed to the SEC’s February discovery requests and agreed not to object on the basis of timeliness. The company has however reserved all other rights and objections.

The consent order for Telegram was filed on the same day that a version of the TON blockchain was launched by the ‘Free TON’ community, in apparent defiance both of SEC and Telegram founder Pavel Durov. The Free TON community has stated that “the blockchain of the initial creator TON (Telegram / The Open Network) may be involved longer.”

Cryptolydian reported earlier that, American Telegram Open Network (TON) announced that investors will only be eligible for an immediate 72 percent repayment, instead of a 110 percent refund option in April 2021, Russian news agency RBC reports.

Abdulhay Mahmoud

Abdulhay Mahmoud is a creative writer with over 15 years of experience in journalism, translation, and investor relations. He has B.A in English and Literature from a reputable University. He recently became a contributor at Cryptolydian.com to fulfill his thirst in reporting digital coins and blockchain-related news, an interest was built over the years.

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