Home
Apps
Apps News
US SEC Halts Telegram's $1.7 Billion Digital Token Offering

US SEC Halts Telegram's $1.7 Billion Digital Token Offering

SEC alleges that Telegram’s tokens are being “unlawfully sold”.

By Reuters | Updated: 12 October 2019 10:31 IST

US SEC Halts Telegram's $1.7 Billion Digital Token Offering

The US SEC said Telegram promised to give the coins to buyers when it launched its blockchain

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Telegram failed to register to sell 2.9 billion digital tokens: US SEC
The action will prevent Telegram from selling its digital tokens in US
Telegram promised to give the coins to buyers by October 31

US authorities said on Friday they have halted a $1.7 billion (GBP 1.34 billion or roughly Rs. 12,078 crores) unregistered digital token offering by the messaging service Telegram Group and its TON Issuer subsidiary.

The Securities and Exchange Commission said it had received a temporary restraining order against the two offshore entities, which the regulator said had failed to register to sell 2.9 billion digital tokens called "Grams" to initial investors globally, including 1 billion to US buyers. The move marks the latest effort by the agency to crack down on the fledgling cryptocurrency industry.

Telegram Discussion

Explore More...

The SEC has taken the position that initial coin offerings are securities offerings and therefore subject to SEC offering rules, which require firms to file registration and disclosure documents.

"Our emergency action today is intended to prevent Telegram from flooding the US markets with digital tokens that we allege were unlawfully sold,” Stephanie Avakian, co-director of the SEC's Division of Enforcement, said in a statement.

Telegram promised to give the coins to buyers when it launched its blockchain by October 31, when the purchasers and the company would be able to sell them into US markets, the SEC said.

A lawyer for the companies did not respond immediately to requests for comment.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.