Telegram decided to provide the records to the United States Securities Exchange Commission which they believe will prove the misconduct in the $1.7 billion offerings of the gram tokens as we are about to read further in the crypto news.
According to a January 13 filing with the court of the Southern District of New York, Telegram decided to provide the court with the bank records after they initially denied to do so in an earlier ruling that was based on the privacy concerns. Today’s ruling, however, will allow telegram to redact the information provided to the court in accordance with the foreign privacy regulations. The letter by the court from the attorneys in defense, Telegram is founded in Russia by Pavel and Nikolai Durov and Is now based in Berlin, so Telegram decided to provide the SEC with the bank records only by redacting them before submitting them to the public.
The fact that the attorneys of Telegram agreed to provide the SEC with full bank records and the public will also have access to redacted versions, means that all eyes will be on the SEC’s next move and we are about to see what they will do or find in the documents. Philip Moustakis who is an attorney with the Seward and Kissel group, and a former counsel at the SEC, explained that the SEC will be on alert for further evidence of Telegram’s ‘’failing to exercise reasonable care to ensure that the purchasers were not acting as underwriters.’’
The SDNY denier the SEC’s original request at first for information earlier in January but did so ‘’without prejudice’’ leaving the subject open to further discussion. The SEC produced invoices from the alleged underwriters to the sale of the Gram tokens of Telegram that the SEC believes demonstrates offering of the tokens outside of their approved level. The saga with the US regulator continues and the messenger services started in earnest back in 2019 when the SEC filed an emergency action demanding a cease and desist order for Telegram. The SEC called the sale of the gram tokens unregistered security offering while Telegram argued that it qualified under the Regulation ID exemptions for the requirement to register such an offering.
The SEC has been examining opportunities to adapt its exemptions which are heavily dependent on making offerings to accredited investors for who the law does not require the same degree of regulatory protection.
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