Telegram Agrees to Deliver Gram ICO Documents to SEC
- Telegram’s lawyers previously requested that the SEC's application be thrown out, calling it an “unfounded fishing expedition.”
According to a court order dated Wednesday, encrypted messaging app Telegram has agreed to disclose financial documents and answer the SEC’s questions that should shed more light on the disposition of investor funds.
The decision comes after months of back and forth where Telegram’s lawyers previously requested that the application be thrown out, calling it an “unfounded fishing expedition.” The legal battle also included the same judge informing the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission that it would not be given full access to Telegram ICO’s banking and financial details.
In its letter to the court, Telegram said it would hand over to the SEC information regarding tokens distributed to initial investors in Grams, as well as the funds it collected from those first buyers. On top of this, it will deliver all final written agreements, communications, and any amendments pertaining to its token sale agreements, including those related to the termination of such contracts.
Evidence of post-ICO sales
These documents, the agency hopes, will demonstrate how much Telegram has spent from the funds it collected in two token sales conducted in early 2018.
In addition, Telegram will reveal the details of its offers to investors as part of the sale of Gram tokens, which ultimately allowed the App owners to raise $1.7 billion from accredited investors, many of whom US citizens.
Although the agency claimed that the information was central to its investigation of Telegram’s ICO, the judge limited the scope of the documents the messaging app must produce.
Telegram argued earlier that its bank records comply with foreign data privacy laws, but the SEC renewed its request and stated that “Telegram does not even mention the names of the foreign countries whose laws might apply, nor does it cite any specific data privacy laws.”
Further supporting its request, the SEC said it obtained evidence of post-ICO sales, which undercuts the argument that the token sale was exempt from registration requirements. The US regulator said Gram tokens were sold after completing its ICO, and two companies already invoiced Telegram for commissions from selling the Grams, months after the controversial initial coin offering concluded.
According to a court order dated Wednesday, encrypted messaging app Telegram has agreed to disclose financial documents and answer the SEC’s questions that should shed more light on the disposition of investor funds.
The decision comes after months of back and forth where Telegram’s lawyers previously requested that the application be thrown out, calling it an “unfounded fishing expedition.” The legal battle also included the same judge informing the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission that it would not be given full access to Telegram ICO’s banking and financial details.
In its letter to the court, Telegram said it would hand over to the SEC information regarding tokens distributed to initial investors in Grams, as well as the funds it collected from those first buyers. On top of this, it will deliver all final written agreements, communications, and any amendments pertaining to its token sale agreements, including those related to the termination of such contracts.
Evidence of post-ICO sales
These documents, the agency hopes, will demonstrate how much Telegram has spent from the funds it collected in two token sales conducted in early 2018.
In addition, Telegram will reveal the details of its offers to investors as part of the sale of Gram tokens, which ultimately allowed the App owners to raise $1.7 billion from accredited investors, many of whom US citizens.
Although the agency claimed that the information was central to its investigation of Telegram’s ICO, the judge limited the scope of the documents the messaging app must produce.
Telegram argued earlier that its bank records comply with foreign data privacy laws, but the SEC renewed its request and stated that “Telegram does not even mention the names of the foreign countries whose laws might apply, nor does it cite any specific data privacy laws.”
Further supporting its request, the SEC said it obtained evidence of post-ICO sales, which undercuts the argument that the token sale was exempt from registration requirements. The US regulator said Gram tokens were sold after completing its ICO, and two companies already invoiced Telegram for commissions from selling the Grams, months after the controversial initial coin offering concluded.