The Securities and Exchange Commission (SEC) announced that it has “filed an emergency claim and issued an injunction” against two offshore entities behind Telegram TON’s digital token offer.
According to the complaint of the SEC, the Telegram Group and TON Issuer Inc. sold “approx. 2.9 billion digital tokens called “GRAM” at discounted prices to 171 first-time buyers worldwide, including more than 1 billion GRAM to 39 US buyers “.
Telegram also promised to deliver his Gram tokens to first time buyers by October 31st. The SEC alleges that Telegram and TON Issuer Inc. have not registered the sale and offering of GRAM and states that the tokens are “securities”.
SEC stops TON & GRAM protecting US investors and classifies GRAM as security
Stephanie Avakian, co-director of the SEC Division of Enforcement said:
Today’s emergency response is designed to prevent Telegram from flooding the US markets with digital tokens that we claim have been unlawfully sold.
We claim that the defendants have failed to provide investors with information about the business of Gram and Telegram, the financial condition, the risk factors and the management required by the Securities Law. “
Steven Peikin, co-director of the SEC Division of Enforcement, confirmed this and added the following:
We have repeatedly stated that issuers can not avoid securities laws by simply labeling their product as a cryptocurrency or digital token
Telegram strives to take advantage of a public offer without fulfilling the long-standing disclosure requirements to protect investors.
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