Telegram misplaced one other spherical in court docket in opposition to the U.S. Securities and Change Fee (SEC) and now can’t launch its $1.7 bill
Telegram misplaced one other spherical in court docket in opposition to the U.S. Securities and Change Fee (SEC) and now can’t launch its $1.7 billion token sale. What does it imply for the crypto business and different startups that offered tokens?
Telegram, the favored messaging app, has huge plans for its blockchain Telegram Open Community, or TON. It additionally had one of many greatest token gross sales in historical past, adopted by an enormous authorized battle over it.
The SEC sued the corporate to halt the TON community, saying its native gram tokens had been unregistered securities. Telegram argued grams had been a commodity. A federal decide in New York issued a preliminary injunction agreeing with the SEC, blocking Telegram from issuing tokens.
The court docket battle has been an attention-grabbing one, as is the ruling of the decide.
Along with two skilled attorneys, Gabriel Shapiro of BSV Regulation and Phillip Moustakis of Seward & Kissel, we’re unpacking this course of, which is prone to set a precedent for different token gross sales structured as SAFTs, or easy agreements for future tokens – beginning with Kik and doubtlessly adopted by many extra.