Telegram is finally speaking out about SEC accusations. It denies all of SEC’s accusations and prepared to push back against it.
Messenger platform company, Telegram planned to launch its TON blockchain token by October 31. The company has sold a total of $1.7 billion worth of its token to investors worldwide. However, the SEC filed for a halt to Telegram the token issuance.
Telegram fired back, stating that the injunction was unwarranted. The company is asking the federal court to deny it. It added that the TON token is not a security as the SEC stated. The filing stated:
“The grams themselves, as distinct from the purchase contracts, will merely be a currency or commodity (like gold, silver or sugar) — not a ‘security’ — once the TON Blockchain launches.”
The filing by Telegram contains mainly of two things. First, Telegram ask the federal court to deny SEC’s injunction request. Including SEC’s demand for the company to produce documents and witnesses. Secondly, for the court to call on the SEC and Telegram to submit “an expedited case schedule to resolve the legal issues underpinning the SEC’s claims.”
What Telegram and its investors risk losing thanks to SEC
Previously, in light of SEC’s injunction, Telegram has to make a deal with its $1.7 billion token investors. In an email sent to the investors, Telegram asked for them to sign a form to approve an extension of deadline for the token launch.
If all of the investors agree to this extension, Telegram will be launching its TON Token at April 30, 2020 at the max.
However, the investors are divided into two batches. One that bought the tokens in February 2018 and the other who bought them at March 2018.
And the investors of the second round have to sign the form before October 23rd, according to a report by Coindesk. If majorities of the group choose not to sign the form, then they can get back “approximately 77 percent” of their money.
The investors of the first batch reportedly received “separate communication” from Telegram.
Meanwhile, Libra, which also received many calls from the government in relation to its regulation, has yet to get any clearance.