Telegram asks court to dismiss the lawsuit filed by the SEC

Messaging app company Telegram has asked the court to dismiss the lawsuit filed by the US Securities and Exchange Commission on its yet to be launched cryptocurrency Gram. After the lawsuit, Telegram postponed the launch of its cryptocurrency Gram to April of the next year.

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Encrypted messaging giant has asked the court to drop the lawsuit filed by the US SEC on its cryptocurrency Gram. In a recent filing to the Southern District of New York on Tuesday, Telegram refuted all allegations made by US SEC in its lawsuit last month. Earlier, US SEC had secured an emergency restraining order from the court to halt the issuance of Gram cryptocurrency.

SEC alleged that Telegram’s ICO was unlawful

 

Just two weeks before Telegram was supposed to issue the Gram cryptocurrency to its investors, SEC obtained a court order to stop Telegram from doing so. In its lawsuit, SEC had alleged that messaging company conducted an unlawful offering of unregistered securities. But in the recent filing messaging app company has refuted all the allegations put on by the US SEC.

 

Telegram to issue its cryptocurrency next year

After meeting with the sudden lawsuit, the company gave its investors two choices, whether they could take approximately 77% of their investments back or wait till April 30th, 2020, to get the tokens, the majority of the investors chose the latter option. Telegram also plans to spend another $80 million before issuing the cryptocurrency. The company had raised a whopping $1.7 billion in its ICO earlier.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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