The U.S Securities and Exchanges Commission (SEC) has filed a proposal for final judgement on the court case between the commission and Telegram Group Inc. The proposal was filed on June 25, 2020 with the New York Southern District Court.
In the proposed final judgement, the SEC wrote that the defendant is severally liable for disgorgement of $1.2 billion. Out of this amount, $1.19 billion represents the amount that defendant has paid as termination amounts, as defined in the original contract. Telegram has been given up to 3 years to make such payments. The defendant is also obliged to pay a civil penalty of $18.5 million to the SEC. This amount is expected to be paid within 30 days after entry of the final judgement.
According to the proposed judgement, the SEC should transfer the amount ordered to be paid to the U.S Treasury. The document stated that the funds should be treated as penalties paid to the government for all purposes, including all tax purposes. It also specified that Telegram may make the payments electronically through the Automated Clearing House network or the Fedwire Funds Service.
The document continued that, by making payments of the Termination Amounts, or of the disgorgement and civil penalty amounts to the SEC, Telegram relinquish all legal and equitable right, title, and interest in such funds and no part of the funds shall be returned to the company. In the event that Telegram fails to make payment within the specified period, the SEC may move for civil contempt.
Telegram had recently announced that it was not going to continue with its TON blockchain project. The company took this decision after a legal battle with the SEC for over 6 months. However, the TON blockchain is now live as an open-source network even though Telegram wouldn’t be issuing its Gram tokens.