New York court postponed SEC v.s Telegram Group Inc. and TON Issuer Inc. to February 18-19, 2020. Defendants are prohibited from distributing or selling Gram cryptocurrency up to this point.
Telegram agreed to postpone the launch until April 30 and offered to return 77% of the invested funds to investors who don’t agree. However, the defendants don’t consider Gram as securities. The companies asked the court to cancel the temporary ban on the distribution of tokens, because, in their opinion, the actions of the SEC contradict common sense.
The SEC insisted on an injunction until the end of the proceedings. Otherwise, the regulator believes, further violations by Telegram are “practically guaranteed”.
TON investors are optimistic and are not going to demand a return on investment, although some tried to sell large quantities of Gram for the price of the second round of ICO.
Recall, October 11, the SEC announced the temporary ban on the Gram distribution. The jurisdiction of the department was provided by 39 American investors who bought coins for $424.5 million.
The regulator claims that Telegram promised some investors a price increase of 10-50 times. According to the SEC lawsuit, the defendants raised a lot more money than they needed for TON development, and investors had no control over expenses.
Nikolai Durov, who manages the creation of TON, has only Russian citizenship, while Pavel Durov has Russian passports, Saint Kitts and Nevis – The Bell noted.
Also, the ownership structure of Telegram Group Inc. is still unknown – the SEC lawsuit says that Pavel owns a 100% share, but Nikolai is called a co-owner.