The UN district court, New York postpones the case hearing against Telegram Open Network (TON) which was filed by the Securities and Exchange Commission (SEC). The case will now be heard on February 2020.
In accordance with the TRO filed, Telegram should have been in front of the court for hearing in New York on 24 Oct but the latest court orders reveal that it would be carried in February 2020.
‘’It is ordered that defendants shall not offer, sell, deliver, or distribute ‘’Grams’’ to any person or entity, until the conclusion of the hearing scheduled by the court for February 18 and 19,2020, except upon further order of the court or agreement of the parties. At the hearing, any party may move the court for the continuation or dissolution of this order.’’
SEC claimed that during the initial coin offering (ICO) Telegram has violated the US securities law and is now being prevented to carry even further violations freely. SEC believes that this proposal would straightly give them a legal right to continue to violate regulations and again creating pressure on the SEC to seek another temporary restraining order.
Just weeks before the launch of TON, SEC announced an emergency action against it on which pushed Telegram to the court asking for the denial of SEC’s injunction which had been a shock to Telegram as it was spontaneously restrained from the sale of its token in the US and its blockchain project had to be freezed. The launch of the TON network will be delayed now till next year and it had cooperated with all legal procedures informing the court that it is completely prepared to suspend all operations associated with grams until all the accusations regarding the ICO are proved to be futile.
Ton Issuer, one of the lawyers representing the Telegram organization had filed the documents with their clients’ proposal to the court and many of the entities associated with TON had strongly objected to some of the demands which SEC had put forward. Many of the SECs demands are already satisfied by the court and Telegram, till now, is not proved accused. further it had declared that along with full support to the court, it will inform the SEC before starting any gram operation within 30 days.
All the statements proved to be vague in the ears of SEC as they boldly argued that merely procrastinating the launch will not be enough to answer the illicit actions of the Telegram, this kind of arrangement ,it argues, would make the distribution of grams and the violations raise and later on it would simply gain more momentum so it is better to address it at that very point where it began so as to keep it from escalating into a much higher issue.