Telegram, the most popular messenger in the crypto community, is facing challenges surrounding the launch of its TON blockchain. Following an intervention by the U.S. securities regulator, a court hearing on the sale of the native gram tokens is scheduled to take place a week before the network was expected to go live.
NY Court to Review SEC Complaint Against TON
The United States Securities and Exchange Commission (SEC) announced last week it had obtained a temporary restraining order for Telegram’s allegedly unregistered coin offering. According to the lawsuit filed by the SEC, the Court for the Southern District of New York will review the case against the messenger’s ICO on October 24.
Telegram’s anticipated initial coin offering (ICO) was conducted privately last year raising $1.7 billion from the sale of 2.9 billion tokens. The commission says investors based in the United States have purchased GRM tokens worth approximately a quarter of that amount, or around $425 million. Two entities, Telegram Group Inc. and its subsidiary TON Issuer Inc. were mentioned in the complaint.
Secondary sales have been held before the coin’s upcoming public release date, which the SEC views as illegal fundraising through an unregistered offering of digital tokens. In one of them, early investor Gram Asia offered to sell its rights to grams on the Japanese exchange Liquid this summer at $4 a token. Private investors paid $1.33 a piece in the second token offering round last spring.
Gram is the native token of the Telegram Open Network (TON), a blockchain that will facilitate smart contracts and decentralized applications.