The Securities and Exchange Commission (SEC) announced that it has “filed an emergency claim and issued an injunction” against two offshore entities behind Telegram TON’s digital token offer.
According to the complaint of the SEC, the Telegram Group and TON Issuer Inc. sold “approx. 2.9 billion digital tokens called “GRAM” at discounted prices to 171 first-time buyers worldwide, including more than 1 billion GRAM to 39 US buyers “.
Telegram also promised to deliver his Gram tokens to first time buyers by October 31st. The SEC alleges that Telegram and TON Issuer Inc. have not registered the sale and offering of GRAM and states that the tokens are “securities”.
SEC stops TON & GRAM protecting US investors and classifies GRAM as security
Stephanie Avakian, co-director of the SEC Division of Enforcement said:
Today’s emergency response is designed to prevent Telegram from flooding the US markets with digital tokens that we claim have been unlawfully sold.
We claim that the defendants have failed to provide investors with information about the business of Gram and Telegram, the financial condition, the risk factors and the management required by the Securities Law. “
Steven Peikin, co-director of the SEC Division of Enforcement, confirmed this and added the following:
We have repeatedly stated that issuers can not avoid securities laws by simply labeling their product as a cryptocurrency or digital token
Telegram strives to take advantage of a public offer without fulfilling the long-standing disclosure requirements to protect investors.
image by Shutterstock
Bitcoin NewsTheBitcoinNews.com – Bitcoin News source since 2012
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored or guest posts, articles and PRs are NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
https://thebitcoinnews.com/Post source: SEC stops TON & GRAM protecting US investors and classifies GRAM as security
More Bitcoin News and Cryptocurrency News on TheBitcoinNews.com
Go to Source
Author: Bitcoin News