Legal professionals representing encrypted messaging app Telegram have requested a United States courtroom throw out regulator calls for for its f
Legal professionals representing encrypted messaging app Telegram have requested a United States courtroom throw out regulator calls for for its financial institution accounts.
In a letter to Decide P. Kevin Castel on the Daniel Patrick Moynihan United States Courthouse in New York on Jan. 3, Skadden, Arps, Slate, Meagher & Flom LLP described the request from the Securities and Trade Fee (SEC) as an “unfounded fishing expedition.”
Financial institution accounts have “no bearing” on case
The SEC had demanded Telegram hand over particulars of the way it spent the proceeds of its preliminary coin providing (ICO), which raised $1.7 billion.
A letter to Decide Castel dated Jan. 2 resulted in Castel giving Telegram lower than a single enterprise day to reply.
“On behalf of Defendants, we write in opposition to the letter movement filed by (the SEC), looking for to compel the manufacturing of voluminous and extremely delicate financial institution data which have little to no bearing on the claims and defenses on this motion and would impose undue burdens on Defendants,” the newest letter reads.
The attorneys proceed:
“Plaintiff’s letter misconstrues the authorized points within the case and omits crucial info. Defendants respectfully submit that Plaintiffs movement to compel constitutes an unfounded fishing expedition and ought to be denied.”
Crunch time for Telegram
Castel will now resolve whether or not or to not approve the SEC’s letter to compel Telegram to half with the data.
Telegram’s newest debacle continues a prolonged authorized course of that has to date did not end in definitive motion.
The SEC has investigated numerous ICOs for securities violations, with Canadian messaging app Kik’s $100 million token sale likewise sparking a authorized battle. As Cointelegraph reported, the corporate was virtually pressured to close down in October final yr because of this.
Final month, SEC chairman Jay Clayton described the physique’s strategy to the cryptocurrency sphere as “measured.”