The United States District Court for the Southern District of New York has postponed the hearing on SEC’s lawsuit against Telegram to Feb. 18-19, 2020. The encrypted messaging company filed a reply on 16th October in which it claimed that Telegram’s cryptocurrency is not a security, and SEC’s request for preliminary injunction should be denied.
SEC on 17th October, responded to Telegram’s reply and asked the court not to deny its request for a preliminary injunction. Telegram was supposed to issue its cryptocurrency on 31st October, but now the company has decided to postpone the launch to April next year. SEC stated that if its request for an injunction is denied, then the company would continue to violate the regulations after five months.
A clause in ICO documents saves Telegram from giving money back to investors in case of a delay. However, the company has proposed a deal to its investors. Investors either can wait for the launch of the cryptocurrency or get back 77% of their investments. As of now, the situation for Telegram looks worrisome as SEC has continuously been attacking ICOs.
