The Security Exchange Commission – SEC, a kind of United States Securities and Exchange Commission, managed to bar the distribution of the Telegram cryptocurrency in court.
See more about this story:
The messaging app Telegram, which in 2018 made a $ 1.7 billion initial coin offering (ICO) to launch its cryptocurrency, is in serious legal trouble in the United States.
A recent decision by the New York District Court in the United States, filed by the SEC, succeeded in preventing the distribution of Telegram's cryptocurrency tokens.
“The novelty in this case, and in the SEC's complaint, is the claim that the buyers of the pre-sale agreement are underwriters. In other words, they are allegedly part of the scheme to sell tokens to the public, ”said Van. Valkenburgh, director of the Coin Center.
Telegram is accused of making an irregular offer without authorization from the responsible agency.
Telegram will appeal
Despite the negative decision, Telegram will appeal.
However, it is very likely that he will lose out of this legal battle. So, in this case, the messaging app will have to return the values of each investor.
That said, it is worth remembering that the final decision of the process may take months. Therefore, Telegram will have a good time to prepare.