SEC fight back against Telegram for clarity on court injunction

• The securities commission in the US has just fought a request from Telegram for clarity in regards to the injunction barring the company from it’s GRAM tokens.
• Such tokens were in correspondence to the $1.7 billion initial coin offerings which raised money to launch TON in 2018.

The securities and exchange commission in the United States has just fought back at a request from Telegram for clarity in regards to the sheer scope of a court injunction barring the company from distributing it’s GRAM tokens.

Writing in a letter to Judge Castel early this week, the securities and exchange commission asserted that the injunction “unambiguously, and properly, applies to Telegram’s delivery of Grams to ‘any person or entity’ [...] and requires no clarification.”

Such tokens were in correspondence to the company's $1.7 billion initial coin offerings which raised money to launch TON in 2018. For those that don’t know, TON is otherwise known as the telegram open network.

At the end of last week on the 27th of March, lawyers for the social network for the letter requesting that the court explain whether the injunction decision from the court on the 24th of March, had jurisdiction outside of the United States.

The letter further noted that the Supreme Court has previously recognised a presumption against extraterritorial applications for the securities laws in the United States, the social network is seeking to distribute its GRAM tokens to investors that represent the $1.2 billion raised from outside of the country.

The commission have described the letter from Telegram as “procedurally barred and legally meritless”. 

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!