Telegram, the popular encrypted web messenger has asked for 5-7 weeks to collect all the information related to its token sale in 2017. The messenger service provider raised $1.7 billion through ICOs for its GRAM token and was slated to launch its TON blockchain platform by the last quarter of 2019. However, SEC obtained an emergency stay order on the distribution of the tokens as Telegram did not register its ICO with the Security and Exchange Commission (SEC) as per the regulatory guidelines set for security offerings.
The SEC also filed a request with the court asking Telegram to submit all bank details of the fund it used from the $1.7 billion raised from the ICO. First, Telegram was hesitant of sharing the details, but the court compelled them to submit all the requested details by 9th January. As per the latest update from Telegram’s law firm Skadden they have asked for 5-7 weeks to collect all the details related to their use and expenditure of collected funds.
The SEC request covered 770 individuals or entities from 12 different countries, however, Skadden was able to review only 76 entities from the requested 770 and thus asked for more time to review all the details.
The Regulatory Clampdown on Telegram
Telegram’s ICO in 2017 was the second-largest fundraiser collecting $1.7 billion, even though the security offering was not hosted in the US in light of regulatory clampdowns, many investors from the States were able to get their hands on the GRAM token via brokers and a few third parties. The SEC’s regulatory guidelines require any security offering to be registered with the body and only if they manage to clear the regulatory guidelines, they are provided with a license to operate.
Amid growing concerns over the delayed launch, Telegram recently made a statement suggesting that the GRAM token won’t help anyone become rich anytime soon. The announcement was seen as a move to clarify that GRAM token was “no get rich quick” scheme.