The NY District Court for the Southern District of New York decided to postpone the hearing about the Securities and Exchange Commission’s injunction against Telegram Open Network (TON) and its Gram token to February in 2020 and we are about to find out more in the blockchain news today.
As it was previously reported, following the Telegram counterclaim on October 16 where the company argued that its native crypto is not a security and the preliminary injunction should be denied, the Securities and Exchange Commission responded with a new filing in the NY District Court just two days ago. According to the TRO filed on October 11, Telegram should have been a part of the court hearing in New York on October 24 and yet the latest court order states that the hearing will be held in 2020:
“IT IS ORDERED that Defendants shall not offer, sell, deliver, or distribute “Grams” to any person or entity, until the conclusion of the hearing scheduled by the Court for February 18 and 19, 2020 (“Hearing”), except upon further order of the Court or agreement of the parties. At the Hearing, any party may move the Court for the continuation or dissolution of this Order.”
Recently, the SEC has claimed that not only did the company violated the US Securities laws during the initial coin offering, it also sought a preliminary injunction to prevent Telegram from further violations. The SEC stated that Telegram’s proposal to deny the injunction will allow them to continue to violate the regulations after five months and put the burden on the SEC to find another restraining order. The SEC has announced there has been an emergency action taken against Telegram on October 11 just weeks before the planned launch of the Telegram Open Network. Telegram asked the US court to deny the action and they are waiting for a response from the SEC seeking a preliminary injunction.
While Telegram has proposed to postpone the launch of the TON, a clause in the purchase agreement for the GRAM token has made the investors concerned that the company will abandon its obligations to return the funds from the gram token sales if there is a delay in the process.
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