SEC Requests the Court to Dismiss Telegram’s Letter Seeking Clarity

  • The conflict between SEC (The United States Securities and Exchange Commission) and the Telegram has not come to a halt.
  • Telegram requested the court to provide clarity regarding the injunction that barred the company from distributing its Gram (GRAM) tokens on March 27, 2020.
  • SEC on March 30, 2020 submitted a letter to the court asking to dismiss the Telegram’s request letter.

The need for telegram having to file a request letter was when on March 24, 2020 the court favored SEC claiming that it provided the needed evidence and had shown a greater likelihood for success. Telegram’s tokens were proven to be unregistered and alleged that they were being sold as security illegally. Hence the token issuance in April was barred from happening. The event immediately followed with the Telegram’s appeal to the court on the same day. 

Telegram Seeking Clarity

Telegram appealed the court again on March 27, 2020 in the seek of clarity whether the court’s injunction held jurisdiction outside of the United States. In other words, they wanted clarification if the injunction applied only to Initial Coin Offering (ICO) investors based in the U.S or to everyone. 

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The letter that was filed by Telegram noted that the Supreme Court previously recognized ‘a presumption against extraterritorial applications’ of the U.S. securities laws, which implied that the U.S laws are not to be applied to any other country. Based on the same implication, the Telegram is seeking the provision of token issuance to the investors that represent the $1.27 billion raised by the firm outside of the United States.

SEC Request Court to Dismis Telegram’s Request

The SEC referred the letter Telegram filed as legally undeserving and procedurally barred. The letter SEC submitted to the court on March 30 asserted that the order against Telegram’s distribution of Grams applied to any person or entity and does not require any means of clarification.

The SEC claimed in the letter that there existed no evidence that Telegram had conducted any “Know Your Customer” diligence concerning the investors or to know if they were U.S. based. Adding that the Telegram’s ignorance about who currently owned Gram interests is proven and its recognition to now take some of them instead of having taken before to prevent the flow back into the United States is too little, too late.

SEC continues to claim and assert that the Telegram seeking clarity and its request is just another trial for the reconsideration of the whole of the process in disguise despite Telegram’s letter being recognized as an appeal for clarification and a request.

Two days later, the founder of the TON Community Foundation sounded optimistic despite all the happenings when he revealed to Cointelegraph that they were reconsidering the launch of the network, as the code is open-source. Daniel Perez, the head of TON Spain was heard saying that No one could prevent the launch of TON by any other entity, person or community, as TON is decentralized and open-source. 

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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