US Court Extends Gram Token Sale Ban
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Feb. 19, 2020

A court in New York has ruled to indefinitely extend the US Securities and Exchange Commission (SEC) restriction on the sale of Gram tokens from the Telegram Open Network blockchain project, iHodl Russia has learned.

District Judge P. Kevin Castel has specified that he would determine later on how long this measure would be valid.

Further hearings between the TON v SEC proceedings were adjourned until April 30.

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Judging by the comments of those present, it was possible to prove decentralization, but the court has doubts that the declared TON capabilities are consistent with the actual situation. According to those who were at the trial, Judge Castel understands what blockchain and decentralization are, but wants to understand the topic more deeply, the source familiar with the matter said.

Telegram lawyer drew the judge’s attention to the fact that the company must fulfill its obligations to Gram investors by April 30, to which the judge replied: "This should not cause problems."

However, the judge did not specify how this would affect the duration of the ban.

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The lawyer noted that the company is ready to agree to a temporary ban. Recall that the SEC filed a lawsuit against Telegram and secured a temporary injunction against the sale of the Gram tokens until April 30, 2020. The SEC claims Telegram was supposed to register the sale of cryptocurrency as a securities transaction.

Earlier iHodl reported that approximately six investors in the blockchain platform Telegram Open Network (TON) had filed a petition with the United States District Court for the Southern District of New York State to keep their anonymity during the court battle between Telegram and the SEC.

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