The messaging service Telegram has been trying for some time to obtain approval from the US Securities and Exchange Commission (SEC) for the sale of GRAM tokens. The SEC had already canceled the offer of telegram tokens at the end of 2019. Now, Telegram is facing a headwind from an American court.
Symbolic $ 1.7 billion project threatened
The New York State Supreme Court ruled the sale of the $ 1.7 billion GRAM token illegal. The court uses existing US stock market law for the ban. Consequently, the resale of GRAM tokens on the secondary market is an integral part of the sale of securities. However, without the necessary registration declarations. New York judge Castel sees the GRAM token as security. For these, Telegram should have undergone official registration.
In one Judicial document He says: “The Securities and Exchange Commission (” SEC “) is trying to prevent Telegram Group Inc. and TON Issuer Inc. (collectively” Telegram “) from adopting a plan to distribute” Grams “, a new cryptocurrency, in a to be entered into by the entity as such as an unregistered securities offering. ”
JUICE offer instead of ICO
In order to carry out the project, Telegram focused not on activating the tokens via an initial offer of coins (ICO), but rather via a simple contract offer for a future token (SAFT). However, the SAFT offer only applies to institutional investors. So far, the offer is accessible to 175 investors. The problem now is that GRAM token holders can sell them on the secondary market. The court only issued an injunction against Telegram so that the company could still appeal.