SEC is Successful in a Lawsuit against Telegram

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In a March 24 decision, the court granted the SEC complaint and Telegram was blocked to issue tokens. The court finds that the SEC has shown significant success in proving that Telegram’s current GRAM token distribution plan is a securities offering in accordance with the Howey test criteria. In 2018, Telegram held an initial coin offering. On March 24, U.S. District Judge P. Kevin CASTEL, of the Southern District of New York granted the SEC request for a preliminary injunction to distribute GRAM tokens. Image courtesy of Cryptocurrency Tech Read the best crypto news analysis here! bitnewstoday.com Bitcoin, investments, regulation and other cryptocurrencies Found a mistake?

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On March 24, U.S. District Judge P. Kevin CASTEL, of the Southern District of New York granted the SEC request for a preliminary injunction to distribute GRAM tokens. The court finds that the SEC has shown significant success in proving that Telegram’s current GRAM token distribution plan is a securities offering in accordance with the Howey test criteria. The trial has been ongoing since October 2019. In 2018, Telegram held an initial coin offering. As in many cases with the ICO, the Сommission was of the opinion that, according to the Howey test, the ICO is considered to be a securities offering; thus, in the case of Telegram, these were the unregistered securities.

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