Emergency Action by SEC! Halts Telegrams’s Token Offering
The U.S. Security and Exchange Commission (SEC) filed a complaint in Manhattan’s federal district court against Telegram. In it, it accuses the company of violating the Securities Act.
Gram might not be launched.
TON is not the first project booked by the SEC for an unregistered token selling.
But this happens to be the first time when the SEC halted an ongoing digital token offering. According to the complaint, defendants unlawfully sold 3.9 billion Grams across the globe including the US. Initially, 210 investors bought Gram tokens at discounted rates and helped raise $1.7 billion.
Here comes the key part. The SEC bluntly states that Grams are considered securities. Its initial funding process was executed under SEC exemption. But this exemption doesn’t allow TON to sell Grams in secondary trading markets.
The buyers are yet to receive Gram. And will happen only after the Telegram’s TON Blockchain goes live on October 31st.
Double trouble!
History tends to repeat itself. And the two defendants might get away from the clasps of the SEC by paying a meager figure as a civil penalty.
Do you have any thoughts on how SEC should be treating such unlawful sales?
Source: altcoinbuzz.io
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