The U.S. Securities and Exchange Commission (SEC) doubts Telegram has enough resources and experience to launch a "revolutionary blockchain" network.
According to the recently published court documents, the SEC doubts that the Telegram messenger team was prepared to launch the revolutionary blockchain in the form in which it was described to its investors.
In particular, the SEC says the Telegram team during the pre-sale investment phase of the TON Blockchain network stated that the scope of the project is "extremely ambitious" and that Telegram will develop a few additional components of TON protocol like TON Storage, TON PROXY, TON DNS, TON Payments without providing investors with plans for execution or address whether they "have sufficient resources to implement these components, each of which is a massive undertaking."
Previously the U.S. Federal Judge Kevin Castel ordered Telegram to share banking information before February 26.
The trial between the financial regulator and Telegram began back in October 2019, when the watchdog suspended the TON's ICO as it considered its Gram token is a security, while the company had not provided investors with information about its financial situation, as required by the U.S. Securities Act.
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