The Securities and Exchange Commission filed a case against Telegram in New York on 11th October 2019. SEC alleged that the company has raised funds to finance TON’s operations by selling almost 2.9 million worth Telegram coins (known as Gram previously) worldwide. The SEC is tried to fore-stall Telegram from delivering the gram tokens it sold which were allegedly the securities had been offered and sold in violation of the registration on the Federal Securities Laws.
On March 24, this year, the District Court in the U.S issued a preliminary injunction prohibiting the delivery of Gram. The SEC also came up with a proof of the likelihood that sales of Gram were part of a more sophisticated plan and an illegal distribution throughout the secondary public market was going on.
Speaking about this Kristinia Littman, Chief Cyber Officer SEC Enforcement Division unit stated that, “New and innovative companies are invited to participate in our capital markets, but they cannot do so in violation of the registration requirements of federal securities law. These regulations oblige Telegram Blockchain to return funds to investors impose a significant penalty and oblige Telegram to notify future digital cryptocurrencies they may offer.”
Telegram has agreed to return more than $1.2 billion to investors and pay a fine of $18.5 million to resolve the accusations by the SEC and Exchange Commission.
“An American court prevented TON, Telegram Blockchain from happening,” said Pavel Durov, the founder and CEO of Telegram. “You are fighting the right battle. This battle may well be the most important battle of our generation for cryptocurrencies and blockchain projects. We hope you will succeed where we have failed.”
Telegram Blockchain is recognized globally with its cryptocurrency being very fast and secure. Gram coins are still available on the Open Ton Network for interested buyers who wait to join. Telegram Blockchain is also offering free Telegram Tokens to new members worth 1700 dollars.