US Court Orders Telegram to Unveil Banking Details

New York District Court has ordered Telegram, the most popular messenger service company, to submit its banking statements to the Securities and Exchange Commission (SEC) by February 26.

The market watchdog had earlier 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.

SEC considered the sale as an unregistered offering, while the messenger service company claimed an exemption from US regulations to register such offering.

Thus, the company has to review its banking details before submitting them, especially as the court does not plan to further extend the deadline.

The court said in a legal notice, “In light of the parties’ arguments presented in their letters and during the January 6, 2020 telephonic conference, the Court orders defendants to produce the requested bank records. The bank records may be produced under a Confidentiality Order.”

“Only redactions necessitated by foreign privacy laws shall be permitted and a log stating the basis for any redaction shall be produced at the time the redacted documents are produced,” the court added.

It was reported that 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.