- Telegram and their Gram token have denied all allegations from the SEC
- The SEC had issued a complain against Telegram on its $1.7 billion ICO
- They claimed it to be a security rather than an offering
In what is considered to be a bold and risky move, Telegram, the messaging application behind the launch of the Gram token, has denied all allegations put on them by the SEC. The Telegram ICO, which sold $1.7 billion’s worth of tokens, was put on hold as the SEC banned the launch of GRAM tokens on October 31.
Following this, Telegram had to push all their plans ahead, which were scheduled to launch pre-2020.
Telegram issued a statement that claims to justify the offering. They claim that the ICO which pulled in $1.7 billion involved foreign purchasers, and the SEC has no jurisdiction over those forms of financing. As for any US buyers, Telegram claims private placements are exempt from oversight, unlike retail and mass offerings.
Telegram agreed it didn’t file a registration statement with the SEC because “none was, is or will be required under the federal securities laws.”
For Telegram, the decision to issue an order to stop the token distribution was an even harsher blow in comparison to potential sanctions.
The company has been asked to meet and defend its case against the SEC in court on February 18 and 19, 2020, in New York.