- Telegram and SEC on 19 Feb had a two-hour argument session for a preliminary injunction against Gram.
- Telegram agreed to provide communications along with some other documents, as requested by the 20th of May.
- The agreement orders contained that the platform shall adhere to the discovery requests of the SEC.
Lawyers of Telegram cryptocurrency and SEC on 19 Feb had a two-hour argument session for a preliminary injunction against Gram. It took a new turn yesterday when Telegram agreed to provide communications along with some other documents, as requested by the 20th of May.
An order passed as a result stating further requirements and procedures to continue the proceedings. The agreement orders contained that the platform shall adhere to the discovery requests of the U.S SEC. Telegram shall provide information to the Commission regarding any assets disbursed to Initial Purchasers under the Purchase Agreements.
Information regarding assets received from Initial Purchasers in connection with the termination of the Purchase Agreements needs to provide. Any amendments made to the same shall also be supplied to the Commission. The agreement postulated that the platform shall provide to the SEC the bank records previously identified by the SEC and which Telegram has agreed to produce.
Preliminary Stages of Telegram- SEC Case
In March, the court passed an order of temporary injunction against Telegram.SEC proves Telegram’s immediate plan to distribute Grams as securities under the Howey test to which no exemption applies. SEC argued that Telegram’s raising of $1.7 billion to lead to the Gram cryptocurrency was, in fact, an offer of securities. Telegram token sale should register with the SEC in the 1946 test set out by the Supreme Court in SEC v. W. J. Howey Co., 328 U.S. 293.
Apart from the above, Telegram’s attorney Drylewski underlined that the organization would not be a validator of the TON blockchain. Therefore, consequentially, investors were not banking on Telegram’s continuing involvement in management. Meanwhile, attorneys for SEC countered by drawing the attention of the court to the previous admissions of the platform’s founder Pavel Durov, that he cares deeply about the reputation of Telegram.
Yet, the counter was sur-rebutted as the validators would have to agree by a two-thirds margin, no single actor would control things. According to his claims, it was the benefit of blockchain, and this cryptocurrency in particular. Further, he compared Grams with other leading cryptocurrencies such as Bitcoin and Ethereum. To conclude that Telegram got its idea of a TON Foundation from the foundations of Bitcoin and Ethereum.
The attorney also highlighted that Telegram didn’t have any objections against preliminary injunctions. As long as look as it does not affect the core of their plans. He concluded by emphasizing the potential of the cryptocurrency. It has smart contracts and other applications to enhance its performance. With these features telegram to out-run the other leading cryptocurrencies in the market.