The US Securities and Exchange Commission (SEC) has reported Telegram has refused to share financial information related to its ICO, in which it attracted about $1.7B.
Finance Magnates has reported citing a court filing that "Telegram is now refusing to disclose the bank records concerning how it has spent the $1.7 billion it raised from investors in the past two years and to answer questions about the disposition of investor funds."
The US regulator suspended Telegram's ICO back in October arguing the company had conducted an unregistered securities sale and had failed to provide investors with information about the company's financial condition, among other things. Shortly afterwards, the SEC ordered the organizer of the Gram ICO to provide documents to justify how much money Telegram had spent, part from some extra information.
Then, the firm announced its decision to put off the launch of its blockchain TON (Telegram Open Network) as well as the distribution of its Gram tokens till all regulatory issues were addressed.
The launch of TON was originally scheduled for October 31. However, it has been delayed until April 30, 2020. Although the company had promised to return the funds to investors if its blockchain was not launched in October, investors have agreed to allow the company to keep the funds.
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