In the latest update from U.S. Security and Exchange Commission’s (SEC) ongoing lawsuit against Telegram for its Gram tokens offering, the commission has bashed the Telegram service’s related token and blockchain. Earlier, SEC replied to Telegram’s proposal to provide summary judgment in an extended filing with the court of the Southern District of New York.
In it, SEC has censured the Telegram’s blockchain, Telegram Open Network (TON) and operation’s Gram (GRM) token. The document read that Telegram has not provided any evidence regarding the launch of TON Blockchain’s State of Development, and it also added that Telegram has marketed less, if any, awaited Grams uses.
Why SEC Is Concerning?
Telegram presented use cases for Gram tokens within specific applications in a recent court filing. However, the document also indicated that such applications don’t require the usage of Gram.
In addition to this, Telegram offered a chart listing uses of applications, Gram tokens, etc. Although the commission recorded several concerns with the Telegram’s chart, the filing it gave revealed that the Telegram’s chart has not specified which potential applications have been created, which were theoretical and which were in progress. There is also no reliable and direct evidence in the record concerning the state or nature of all the potential applications provided in Telegram’s chart.
The court document listed various other questions related to the usage of Gram tokens, as well as an entire offering from Telegram, which showed SEC has no shortage of considerations on the matter, with no resolution at present. Earlier, some reports showed the SEC’s crackdown on various ICOs about their blockchains and associated tokens to control the mostly unregulated and slowly increasing crypto industry.
Issues Arising From Telegram
Earlier, United States Chamber of Digital Commerce filed against SEC over Telegram’s alleged unlawful token. In 2018, Telegram launched its ICO, which managed two stages of private investments that provided total funds worth $1.7 billion to the messaging firm. Next year, the SEC investigated on cryptocurrency efforts of Telegram, claiming that the company has no registration with SEC for its enquiry on Gram tokens and ICOs.