Telegram Consents to SEC Demand for ICO Documents
Telegram has filed court papers in an agreement to hand over documents related to its 2018 initial coin offering
Telegram will provide the US Securities and Exchanges Commission (SEC) all the documents that relate to the company’s initial coin offering (ICO). The platform conducted a token sale in 2018, raising over $1.7 billion from individuals and organisations.
The communications app has also faced legal action, as the SEC moved to stop the launch of the Telegram Open Network (TON). According to the SEC, Telegram conducted an unlicensed token sale, an assertion that Judge P. Kevin Castel, sitting at the New York District Court agreed with.
On March 24, 2020, the judge issued an injunction that put a stop to Telegram’s plans to launch its TON blockchain by April 30.
Now the firm has filed a consent order, which means it has agreed to provide the SEC with documents and other materials tied to ICO agreements between the firm and those who took part in the coin offering. The firm will now hand to the SEC documents detailing its token distribution as well as other sale agreements.
Inner City Press reports that Telegram filed the order of consent on May 7, the same day the TON community announced the launch of its Free TON Blockchain.
It also follows a communication Telegram sent out to its investors concerning refunds on their investments. While the firm gave non-US investors the option of taking a 72% refund now or ‘loan’ the firm and wait in return for a 110% payout in April 2021, it was categorical that US-based investors had no option but to accept a 72% immediate payout.
In its filing, Telegram will move to provide the US regulator with details about its Gram token, distribution, and contractual obligations entered into with investors.
Telegram also consents to offer details related to “any assets disbursed to Initial Purchasers under the Purchase Agreements and assets received from Initial Purchasers in connection with the termination of the Purchase Agreements.“
The information is expected by May 20, 2020, and will include financial records from the ICO.
Telegram’s filing, however, comes on the back of a scathing attack the platform’s founder Pavel Durov posted on May 7.
According to the post, published in Russian, the Telegram CEO states that the US is not attractive anymore for technopreneurs. He referred to the country as a “police state,” and said that India provided a much more attractive proposition for tech entrepreneurs than Silicon Valley.Pavel Durov made his comments in a piece titled “7 Reasons Not To Move To the [Silicon] Valley.” Notably, however, the Telegram chief is yet to comment on the launch of the Free TON Blockchain.