As Telegram’s legal battle with the United States Securities and Exchange Commission continues to unfold, the U.S. authorities have convinced the judge to bar the company from issuing Gram tokens — at least in the near future.
On March 24, the U.S. District Court for the Southern District of New York judge said that the SEC “has shown a substantial likelihood of success” in proving that Telegram, the firm behind the eponymous open-source encrypted messenger, distributed unregistered securities.” As a result, the federal judge granted a preliminary injunction against the company, preventing it from delivering Gram tokens to investors.
Telegram has already filed a notice of appeal, meaning that the ruling will be reviewed — but experts are pessimistic about the firm’s chances. Meanwhile, the Telegram Open Network community stresses that it has all the tools to proceed with the launch, regardless of what the authorities decide.
SEC vs. Telegram — How it all started
The SEC took Telegram to court in October last year, announcing that it was suing the firm and its wholly-owned subsidiary, TON Issuer, for holding an unregistered token sale. Telegram made waves after it…
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Author: Stephen O’Neal