Telegram representatives insist that Gram tokens are not a security, and they petition for the court to reject the restriction on their distribution imposed by the US Securities and Exchange Commission (SEC). This writes Financefeeds .
As you know, earlier in October, the SEC through a federal court achieved a temporary ban on the distribution of Gram cryptocurrency among investors. According to the regulator, the asset is a security, and the company itself violated US law when conducting an ICO.
A response statement, a copy of which was in the possession of the publication, said that Telegram did not offer any securities, and the SEC claims are based on a “fundamentally distorted theory” that Gram is subject to the relevant laws of the United States.
“Telegram has concluded private purchase agreements with a limited circle of highly qualified buyers (closed placement), which provided for the future payment of the currency (Gram), but only after the completion and launch of the TON blockchain,” the document says.
Telegram also emphasizes that it has already issued a closed placement as an offer of securities, subject to a corresponding exclusion from the registration rules in accordance with the Law on Securities of 1933.
“Gram tokens themselves, unlike purchase and sale contracts, can hardly be considered currency or exchange commodities (which include gold, silver or sugar), as well as a“ security, ” company representatives insist.
Trolling or the risk of new ships? Russian experts analyzed the conflict between Telegram and SEC https://t.co/WeeiXIowrm # opinion #SEC #Telegram #TON pic.twitter.com/I2YHZ1HRY3
– BlockchainJournal (@BlockchainJournal) October 17, 2019
As CoinDesk further clarifies, in a letter to the court, Telegram states that the actions of the SEC are contrary to the long-standing precedent of the Supreme Court, SEC's own views on other cryptocurrencies, as well as simple common sense.
In conclusion, Telegram lawyers insist that the court reject the SEC's request for a preliminary injunction and restore the status quo for the sale and distribution of Gram tokens.
“The court does not need to issue a temporary ban, which can be misinterpreted by subscribers of the closed placement of Telegram and the public in this case, which received wide resonance,” the company said.
As BlockchainJournal reported earlier, Telegram representatives announced their readiness to postpone the launch of the Telegram Open Network blockchain platform and suspend all operations with the Gram digital currency. In doing so, the company notified the Southern District of New York State Court of its intention to challenge the SEC lawsuit.
Information was also received that the project investors received a letter with information about the proposed transfer of the TON launch from late October to April 30 next year.
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