Telegram has responded to accusations made by the US Securities and Exchange Commission (SEC) saying the regulator's ban on the sale of its Gram tokens is illegal, Financefeeds reported yesterday.
Telegram argues that its Gram token is not a security and that the SEC's actions "contradict Supreme Court precedents, the SEC's own previous decisions about other cryptocurrencies and common sense.
Telegram representatives say the firm "has not offered a security to the public:"
"Telegram did not offer any securities to the public through an ICO. Rather, Telegram entered into private purchase agreements with a limited number of highly sophisticated purchasers that provided for the future payment of a currency (Grams) but only following the completion and launch of the TON Blockchain."
It has recently been known that Telegram has decided to put off the launch of TON and the distribution of its Gram tokens till all regulatory issues are addressed.
The SEC suspended Telegram's ICO at the end of last week arguing Gram is a security and that its issuer has not disclosed information about the company's financial situation, business, management and risks.
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