Telegram Blockchain operators have settled a NY court dispute by paying $18.5 million fine
The cryptocurrency settlement announced this weekend comes after Telegram Blockchain announced in May its decision to withdraw its cryptocurrency-based subsidiary, Telegram Open Network, or TON.
Telegram has agreed to return more than $ 1.2 billion to investors and pay a civil fine of $ 18.5 million to resolve accusations by the United States Securities and Exchange Commission that the unregistered offer of Digital cryptocurrency tokens from the instant messaging platform called “Grams” violated New York federal securities laws.
The Telegram blockchain settlement announced this weekend comes after Telegram announced in May its decision to withdraw its cryptocurrency-focused subsidiary, Telegram Open Network (TON), due to issues it faced as a result of the review. Meticulous from the American SEC. Telegram’s engineers had been working on the blockchain platform called TON and a cryptocurrency they would name Gram for two and a half years.
Telegram Blockchain: On October 11, 2019, the SEC filed a lawsuit against Telegram in New York, alleging that the company had raised capital to finance its cryptocurrency operations by selling approximately 2.9 billion Telegram coins, known as, Grams to 171 initial buyers worldwide. Cryptocurrencies: The SEC sought to pre-empt Telegram from delivering the gram tokens it sold, which the regulator alleged were securities that had been offered and sold in violation of the registration requirements of NY federal securities laws.
On March 24, 2020, the United States District Court for the Southern District of New York issued a preliminary injunction prohibiting the delivery of Telegram Coins and finding that the SEC had shown a substantial likelihood of proving that the sales of Telegram Tokens were part of a more sophisticated plan and extensive illegal distribution of Gram Coins to the secondary public market.
“New and innovative companies are invited to participate in our capital markets, but they cannot do so in violation of the registration requirements of federal securities laws,” said Kristina Littman, Chief Cyber Officer SEC Enforcement Division unit, in a statement. “These regulations oblige Telegram Blockchain to return funds to investors impose a significant penalty and oblige Telegram to notify future digital cryptocurrencies they may offer.”
Telegram founder and CEO Pavel Durov said in May that “an American court prevented TON, Telegram Blockchain from happening.” Durov urged others to continue to fight for decentralization, balance, and equality around the world when dealing with cryptocurrencies. “You are fighting the right battle. This battle may well be the most important battle of our generation for cryptocurrencies and blockchain projects. We hope you will succeed where we have failed, “he stated.
It was also noted, the Telegram Blockchain is already recognised internationally and the TON blockchain was very fast, plus Gram Coins were very secure as a cryptocurrency, and Gram Coins are still available on the Open Ton Network.
Cryptocurrency New York – Plus, over the last few months, the Telegram Blockchain has teamed up with many companies in NY and around the U.S to help poor communities, plus they have been offering free Telegram Tokens to new members on sign up, worth 1700 dollars, so feel free to join the Gram Cryptocurrency ICO, also known as, Gram Free, and TON.