The SEC has produced new proof in its case in opposition to Telegram, which exhibits that the corporate was engaged in buying and selling Gram tokens a number of months after its preliminary coin providing (ICO).
Messaging app Telegram has been embroiled in a lawsuit with the US Securities and Exchanges Commission, which alleges that US$1.7 billion raised from the sale of Gram tokens between January and March 2018 ought to have been registered with the authority as a result of the tokens represent a safety. Telegram has constantly refuted these claims and revealed an announcement final week to handle the continuing case.
However, the SEC has produced damning new proof, which exhibits that no less than two entities invoiced Telegram for fee from promoting Gram tokens in June and July of 2018, a number of months after its ICO ended. Investment fund Da Vinci Capital and Gem Limited, a Maltese-based agency, which was included within the Paradise Papers, requested fee of $209,783 and $1.1 million, respectively, for “subsequent sales” of Gram tokens.
According to the invoices offered by the SEC, Da Vinci Capital offered over US$2 million value of Gram tokens to ITI Funds on June 20, 2018. Gem Limited offered US$8.6 million of Grams to Goliat Solutions and an extra US$4.5 million to Space Investments Limited on July 2, 2018.
“These documents undermine Telegram’s claimed affirmative defense that the Offering was exempt under Regulation D. First, Telegram either raised more than the $1.7 billion for which it claimed an exemption, or it did not raise $1.7 billion as of March 29, 2018 and the later funds may have been raised through underwriters,” an SEC submitting mentioned. Regulation D is meant to stop purchasers of tokens from appearing as underwriters, which means they primarily promote securities to the issuer for a fee.
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The SEC has efficiently sought an injunction in opposition to Telegram, which is able to forestall it from launching its TON blockchain and Gram tokens till the case is resolved. Both events will return to court docket on February 18 and 19.
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