SEC Bans Telegram's Cryptocurrency
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Oct. 11, 2019
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The U.S. Securities and Exchange Commission (SEC) has announced it has filed "an emergency action" and obtained a temporary restraining order against Telegram's upcoming cryptocurrency — Gram.

According to the official press release, Telegram failed to register its offers and sales of Grams, which are securities, in violation of the registration provisions of the Securities Act of 1933.

Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement claims the SEC emergency action today is intended "to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold."

"We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require," she added.

Steven Peikin, Co-Director of the SEC’s Division of Enforcement, says Telegram seeks to obtain the benefits of a public offering "without complying with the long-established disclosure responsibilities designed to protect the investing public."

Earlier iHodl reported that the Telegram Open Network platform (TON), a blockchain network developed by Telegram, finally revealed its Terms of Service, according to which, the TON network developers have full authority to close, terminate or disable any or all of the Services, user account, or access to the Services "at any time and for any reason."

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