In the latest, Security Exchange Commission, i.e. SEC vs Telegram case is still heated as SEC is now bashing the Gram cryptocurrency and is not willing to give the company Telegram any relief in the case.
The cloud-based instant messaging and voice over IP service, Telegram has recently met a bad fate with a restraining order proscribing the launch of their Telegram Open Network service and from issuing Gram tokens. SEC claimed the company was running an unregistered initial coin offering (ICO).
SEC vs Telegram in the court
While the Securities and Exchange Commission requested the federal court not deny their appeal for a precursory injunction in opposition to the company.
It was owed to this restrain that the deadline for the Gram launch was pushed to April 2020 over massive regulatory investigations.
Telegram responded by stating that Gram token was not, in fact, collateral. Thereby, the restraining order which disallowed the company from launching on October 31, was unjustified.
The investors were prompted to either wait until the next stipulated deadline or get a return on seventy-percent of their investments.
Yet still, SEC objected to this postponement in the submitted documentation in the SEC vs Telegram case. Their ombudsman stated that the breaking of the law is inevitable if they are given the chance to distribute their tokens. He further explained that Telegram’s counterargument about its internal coin offering not being collateral was not persuasive enough.
Judge P. Kevin Castle, the moderator of this case, has yet to vocalize his standpoint on this legal combat.