SEC halts Telegram’s $1.7B ICO

The Securities and Exchange Commission (SEC) today has announced that it has filed “an emergency action and obtained temporary restraining order” against two offshore entities behind Telegram’s TON ICO.

“Our emergency action today is intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold,” said Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement. “We allege that the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.”

“We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token,” Steven Peikin, Co-Director of the SEC’s Division of Enforcement. “Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”

SEC halts Telegram’s $1.7B ICO written by Steven Zheng @ October 11, 2019 Steven Zheng

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