The US Securities and Exchange Commission (SEC) has filed a lawsuit against Telegram Group Inc. and TON Issuer Inc. engaged in Gram token sales. The document says that the issuers were able to raise $ 1.7 billion from 39 American investors.
SEC representatives note that the provision of information on financial transactions is required to protect investors from potential fraud. Telegram never registered the sale and circulation of tokens, thereby violating the securities law.
The lawsuit was filed with Manhattan Federal Court last Friday. The Securities and Exchange Commission demands that law enforcement agencies take necessary steps to settle the situation. It is complex in that there is simply no judicial practice concerning digital currency issuers, which means that the court ruling may be unpredictable.
Many cryptocurrencies responded to the news. Note Bitcoin’s price fall on October 11:
Ethereum’s price went down as well:
So did Litecoin’s:
Telegram is under obligation to send investors their tokens by October 31, 2019, but the lawsuit jeopardizes these plans. According to Bloomberg, Telegram has sent letters to its investors describing possible ways of getting out the situation. There have also been rumors that the launch of the blockchain may be postponed for a year.
We would like to remind you that earlier this month company representatives announced that the team was coping with the functions assigned to it, and Telegram Open Network would be launched by the end of the month.