Telegram Refuses to Report How They Spent $1.7B Raised in ICO

Telegram Refuses to Report How They Spent $1.7B Raised in ICO

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On Thursday, TON founders obtained an order to open their TON ICO paperwork to the investigators. The order got here through a courtroom submitting by the U.S. regulator. Per the doc:

“Plaintiff respectfully strikes to compel Defendants to reply questions and supply paperwork relating to the quantities, sources, and use of funds raised from traders in reference to the unregistered sale of securities at challenge on this case.

The requested financial institution information are extremely related to the problems in dispute on this case, together with how a lot cash Telegram has spent, and in what method, in growing the TON Blockchain, the Telegram Messenger utility to be built-in with the TON Blockchain, and associated purposes.”

The orders ought to give regulators a listing of spendings made by the group over the past 2 years, however Durovs refuse to offer out such info.

The SEC is citing securities legislation as a canopy for yet one more ICO test. It has gathered $1.7 billion, which is considerably an enormous sum even for a profitable software program growth firm. Nonetheless, it isn’t as simple to crack the Durov brothers as somebody might imagine:

“Defendants at the moment are refusing to reveal the financial institution information regarding how they’ve spent the $1.7 billion they raised from traders up to now two years and to reply questions in regards to the disposition of investor funds”

The SEC Doesn’t Like Severe ICO Initiatives

Roughly a month earlier than the official launch of the Telegram‘s TON community (for quick and safe funds), the SEC assaults challenge growth. The Durovs didn’t count on such a transfer.

In October 2019, TON builders had been nearly able to launch the mainnet. As an alternative, they issued an announcement saying that the negotiations with America’s SEC are in a dead-end and the coin’s launch is postponed. Nonetheless, the conversations between the SEC officers and Durov brothers had been in place for not less than 1,5 years, so this challenge didn’t simply come out of the blue.

Why the SEC out of the blue began claiming that GRAM tokens are securities? Through the ICO, Telegram founders made precautions and restricted the U.S. residents from collaborating within the occasion. However a bunch of American traders discovered a means to purchase tokens through third events. Now, the SEC thinks it’s their jurisdiction, so it ordered to cease the TON’s launch. The listing of calls for is rising, that’s why it appeared that GRAM is ‘safety’. Seems like the one option to launch TON is to adjust to the U.S.

The SEC Will ‘Examine’ Greenback Rivals

Pavel and Nikolai have developed one challenge on the roots of one other. That is what Zuckerberg was making an attempt to do with Libra by setting the development yard proper close to Fb‘s company circle of affect.

Nonetheless, when the SEC see some ICO challenge that has a really massive base of loyal clients, it begins checking every little thing with double pace. Unusual, how tons of and 1000’s of the scammy ICO initiatives went right here and there after which to Oblivion on the SEC’s eyes… and no person needed to behave.

In the meantime, with regards to some ICO mannequin that isn’t clearly silly, scammy or led by the corrupt authorities officers, the SEC instantly spots some ‘risks’. Will the SEC discover a option to discourage builders and traders of TON from creating the competitor capable of hit the greenback’s hegemony?