Telegram’s plans for its cryptocurrency and blockchain network might even be in peril. The America Securities Associate in Nursingd Exchange Commission has filed AN emergency action and obtained a brief lived restraining order against the company, that stops it from distributing and commerce its Gram tokens inside the country. per the regulators, the company sold-out 2.9 billion Grams at discounted prices to 171 initial purchasers worldwide, raising $1.7 billion inside the tactic. A billion of those tokens were purchased by people inside the America.
The agency says wire didn’t register the giving with its geographic point, and since it sees Grams as securities, it’s damning the company of violating the Securities Act of 1933. It’s not clear but this restraining order would have a bearing on Gram’s launch as a full. Former SEC adult Zachary Fallon told Bloomberg that it would jointly complicate the company’s ability to sell tokens in numerous countries. but although it doesn’t stop wire from launching outside the America, it would still cause giant issues for the company. The the massive apple Times reportable back in August that wire secure investors it would deliver Grams by Oct thirty initial or return their money.
The SEC Division of Enforcement’s Co-Director Stephanie Avakian said:
“Our emergency action today is intended to prevent Telegram from flooding the US markets with digital tokens that we allege were unlawfully sold. We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.”
The agency also stressed that companies can’t avoid federal securities laws just by labeling their products a cryptocurrency or a digital token.