- The SEC has actually stopped messaging service Telegram’s $1.7 billion ICO.
- The United States regulator argues that the company’s strategies to sell digital tokens were unlawful.
- Telegram stopped working to register its plans to offer the “Grams” tokens, the SEC stated.
U.S. authorities said on Friday they have halted a $1.7 billion unregistered digital token offering by the messaging service Telegram and its TON Company subsidiary.
The Securities and Exchange Commission said it had gotten a temporary limiting order against the two overseas entities, which the regulator said had actually stopped working to register to offer 2.9 billion digital tokens called “Grams” to initial investors globally, including 1 billion to U.S. buyers.
The move marks the current effort by the company to split down on the fledgling cryptocurrency market.
The SEC has taken the position that initial coin offerings are securities offerings and for that reason subject to SEC providing rules, which need firms to file registration and disclosure files.
” Our emergency situation action today is intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully offered,” Stephanie Avakian, co-director of the SEC’s Department of Enforcement, stated in a statement.
Telegram assured to offer the coins to purchasers when it launched its blockchain by Oct. 31, when the buyers and the company would have the ability to sell them into U.S. markets, the SEC stated.
In a letter to financiers obtained by news outlets Bloomberg and CoinTelegraph, Telegram consequently stated: “We marvelled and disappointed that the SEC chose to submit the claim under these scenarios, and we disagree with the SEC’s legal position.”
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