The US SEC is currently suing encrypted messaging platform Telegram for unlawfully conducting a billion-dollar ICO for its native digital currency. Telegram had raised over $1.7 billion in an ICO in 2018, but just a few weeks before the launch of the blockchain network, US SEC filed a lawsuit against the company for conducting illegal ICO.
SEC successfully secured an injunction against Telegram.
Known as “Investor Z,” the investment company said it wanted to redact its unique analysis of the Telegram ICO from the case. It argued that to divulge the details of its investment strategies would be like publishing the much-guarded recipe for Coca Cola. The case concerns the issuance of Gram tokens by Telegram. The TON network was supposed to launch back in October last year, but the SEC successfully secured an injunction against the firm to prohibit the issue of any further tokens.
According to the US SEC, the offering was unregistered security, and therefore illegal under the US securities law. US SEC so far has refused to compromise on publishing full details of the analyses by different investors in the project.
Investors argue for commercially sensitive information to be removed from the case.
Investor Z has joined the list of other firms who are arguing for commercially sensitive information to be removed from the case. Investor Z stated that the SEC contends that redacting identifying information of the various non-parties involved in the communication alone is sufficient to protect their privacy interests. The SEC is wrong, the investor further noted. He further argued that investors in ICOs rely upon their proprietary internal decision-making processes for investments and other strategic decisions. Earlier in February, an anonymous investor made the same request. US court had ruled that Telegram would not be able to issue token to American citizens or citizens outside of the USA earlier.
Telegram had earlier announced that they would launch the token in mid this year, but it seems unlikely as the legal battle between the company and regulators continues to drag on.
